The Finance and Administration Cabinet’s Department of Revenue (DOR) encourages Kentucky taxpayers to file electronically again this year. The benefits of e-filing result in reduced tax preparation time, accuracy of returns, acknowledgement of the receipt of your return and faster refunds. In 2007, a record 1,013,269 returns were filed electronically, which represents 56 percent of the total 1,806,811 returns filed for tax year 2006.
The filing deadline for 2007 Kentucky individual income tax returns is April 15, 2008. Individual taxpayers may skip the last-minute rush and avoid needless mistakes by filing early, taking advantage of the speed and convenience of electronic filing and choosing direct deposit for any refunds.
During tax season, the DOR receives in excess of three million pieces of mail, including some 750,000 individual income tax paper returns, all of which must be opened, sorted and manually entered into DOR computer systems. E-filing allows the taxpayer to get their refund in as fast as five to 10 days if they elect for their refund to be direct-deposited into their checking or savings account.
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 nine cents it costs to process an electronic return. As a result of the growing popularity of e-filing, the commonwealth has saved approximately $8.1 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 Jonathan Miller. “Not only are these paperless transactions less costly and more efficient, the number of paper forms printed each year is also reduced, 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.
Taxpayers who owe money may pay their 2007 Kentucky individual income tax online with Visa or MasterCard at www.revenue.ky.gov by clicking on the KY E-Tax logo in the upper right-hand corner of the page. Taxpayers who do not have access to the Internet, but wish to pay their taxes with a credit card may do so by calling the DOR at 502-564-4581.
All Kentucky income tax forms are available at http://www.revenue.ky.gov/forms/ or by calling 502-564-3658. Forms are also available from most local post offices, financial institutions and libraries, as well as any of the 10 DOR field offices throughout the state. A list of field offices is available at http://www.revenue.ky.gov/aboutus/taxpayerservicecenters.htm.