Denver, CO – The income tax filing deadline is about one month away. It is time to start working on filing your Colorado income tax returns. The Colorado Department of Revenue encourages taxpayers to file their taxes electronically. Electronic filing, or “e-filing,” has revolutionized filing state and federal income tax returns. Preparing and submitting returns can be easier and less time-consuming than ever before. During 2010, more than half of Colorado taxpayers submitted their taxes electronically and received their refund faster. Remember, before starting the Colorado income tax filing, you must complete your federal tax return. The federal taxable income amount is the starting point for Colorado income tax.
The Colorado Department of Revenue offers free electronic filing services to file Colorado income tax returns, receive refunds electronically, or to check the status of a refund.
Colorado NetFile is available online at http://www.netfile.state.co.us/. This Web-based, free service makes filing easy and full-year, part-year and nonresidents may use it. NetFile is a convenient, accurate and secure electronic filing system that not only saves time but helps speed the process of getting income tax refunds. The Department of Revenue has upgraded NetFile to offer a more user-friendly experience, improved security and better system performance by creating the new version using the latest software. This requires NetFile users to download the free Microsoft Silverlight. Microsoft Silverlight is a key part of this program. Silverlight is similar to Adobe Flash. Direct Deposit of a refund may be requested through NetFile. If you owe tax and you use NetFile, you are given the option to pay your tax by credit card or electronic check. Be sure to print a copy of your filing, submit the filing and print a copy of your confirmation page from NetFile before you exit the service.
Federal and State Electronic Filing (FSEF) program refers to filing services that enable taxpayers to file both federal and state returns together in one computer transmission. FSEF is a service provided by many tax professionals and available to taxpayers directly via most tax software providers. This option may be free or low-cost for qualified filers. Some taxpayers may be eligible for the IRS e-file service at low-cost or no cost. See the IRS Web site http://www.irs.gov/ for information about these options.
Direct Deposit is the quickest and most secure way to receive a state refund. This FREE service deposits the refund amount directly into a bank account designated by the tax filer. Using Direct Deposit saves paper and avoids lost or stolen refund checks.
Pay Tax income tax online. Colorado taxpayers have another option when it comes to paying their Colorado individual income tax. No matter how a Colorado income tax return is filed, taxpayers can pay tax owed through the Colorado Online Tax service which can be accessed any time of day at http://www.colorado.gov/paytax. Individual extension and estimated payments may also be made through this service. There is a nominal fee to use the convenience of online payment.
For links to online services, visit the Colorado Taxation Web site, www.TaxColorado.com .