Kentucky Taxpayers Encouraged to File Electronic Returns
E-filing with direct deposit may result in receiving your refund in five business days.
The Finance and Administration Cabinet’s Department of Revenue (DOR) encourages Kentucky taxpayers to file individual income tax returns electronically. This year, over 750,000 Kentucky individual income taxpayers have already filed electronically, which allowed them to receive their refunds within 5-10 business days. Taxpayers may avoid delays in receiving their Kentucky individual income tax refund by taking advantage of the speed and convenience of electronic filing and choosing direct deposit for any refunds. An electronically filed refund return choosing direct deposit may result in the refund being deposited into the taxpayer’s bank account in as little as 5 business days. An electronically filed refund return requesting a paper check will generally result in the paper check being received within 10 business days.
Electronically filing a Kentucky individual income tax return will result in receipt of a refund much faster than a refund claim filed on a paper return. During tax season, the Department of Revenue (DOR) receives in excess of three million pieces of mail, including approximately 750,000 individual income tax paper returns that will be filed by the due date. All of the paper returns must be opened, sorted and manually entered into DOR computer systems. This manual process delays the refund for a paper return to an average 12 weeks from the time of filing.
An added benefit of e-filing is the savings to the commonwealth. Each paper return processed by the DOR is estimated to cost approximately $1.62, compared to the estimated $0.09 it costs to process an electronic return. As a result of the growing popularity of e-filing, the commonwealth has saved approximately $6.6 million since 2001 in the reduced cost of processing returns.
“Filing your taxes electronically saves the commonwealth money and reduces processing time, allowing taxpayers to get faster refunds,” said Finance and Administration Cabinet Secretary John Farris. “Not only are these paperless transactions less costly and more efficient, they also reduce the number of paper forms printed each year, which is more environmentally friendly.”
More than one million Kentucky taxpayers may be eligible to prepare and file their taxes electronically at no cost thanks to a public-private partnership called the Free File Alliance. To find out if you qualify, visit http://www.revenue.ky.gov/freefile.htm.