Definition of Electronic Tax Filing

Electronic tax filing, referred to as e-file by the Internal Revenue Service, is a computerized method of filing income tax forms through the Internet. As of 2010, the service is available on the IRS website free of charge.

Free File Fillable Forms

• The first method of electronic tax filing is through Free File Fillable Forms. Available on the IRS website, this blank 1040 form allows the user to input information manually and includes the ability to make basic calculations. After filling in the information, it may be submitted to the IRS for evaluation.

Traditional Free File

• Free for taxpayers earning $57,000 or less annual income (as of November 2010), the Traditional Free File uses software designed to aid in income tax preparation. Through use of basic questions, the software determines personal needs. All the math is done automatically and values are checked for accuracy. State income filing may be available for specific states at an additional fee.

Income Tax Filing for Businesses

• Electronic tax filing is available for businesses and self-employed individuals. The IRS's website contains information regarding approved e-file products and services and suggest that businesses consult a tax professional prior to filing.