Mobile E-file Tax Apps: Using SnapTax to File IRS Form 1040EZ

Jan 27, 2011
Carol Finch

How to Use TurboTax SnapTax to File a 1040EZ - Photo by YM

If you are filing taxes with Form 1040EZ and own an iPhone or Android phone, then you may be able to use the mobile e-file app, SnapTax. How does this work?

The developers behind TurboTax have developed a smartphone tax app that could allow you to file your taxes via your iPhone or Android. What is SnapTax, who can use it, how does it work and is it worth using?

What is SnapTax?

This is a free to download mobile app designed for use with iPhones and Androids. It allows you to file your taxes from your phone and can be found in the iTunes app store or the Android market. Although SnapTax can be downloaded and tried out for free, there is a charge if you go on to print your return or use the app to actually file. This is currently discounted at $14.99 (until March 25, 2011) from the regular price of $19.99. The cost includes one federal 1040EZ, one state return and e-filing.

Who Can Use TurboTax SnapTax?

The app can only be used to file Form 1040EZ. Although it works for any state, there are also some other conditions that may dictate whether you can use it. For example, you must have:

An income of less than $80,000 (individuals) or $100,000 (married couples).
Income based only on W-2s, interest or unemployment payments.
No dependents.
No home/real estate ownership.

If it becomes apparent that you shouldn't be using this mobile 1040EZ, the app will tell you why and ask if you want to switch your filing to the regular TurboTax online program.

How Does SnapTax Mobile E-filing Work?

This app has a built-in image-recognition system that basically reads information from your W-2 and converts it into an electronic version of the 1040EZ. Required steps include:

Use your phone to take a photo of your W-2. This information is then encrypted and used to populate sections of your 1040EZ. If you prefer you can manually type in the relevant data.
Answer a series of short questions to fill in the rest of the form.
Preview your calculated refund.
Check your return and then e-file it. You can also print your return and file by mail if you prefer.

It is estimated that the process could take as little as 15 minutes.

Is it Worth Using SnapTax to E-file?

This may be a good option to consider if you have basic federal and state filing needs and are eligible to use a 1040EZ (including the conditions set by SnapTax). The company offers a range of guarantees that may also be useful. For example, if you find that another tax preparation system would have given you a smaller tax liability or larger refund, then the company will refund your purchase price. If the system makes a calculation mistake, then you are offered a penalty/interest pay-back guarantee.

The Snaptax mobile e-file app is one of a range of recent filing initiatives designed to make tax preparation and submission easier. The IRS itself recently launched its first mobile app, IRS2Go, to allow smartphone users to check refund status and to access news and information from their phones.

Sources: TurboTax (SnapTax; What is SnapTax?); The New York Times (New Tax for Phone: File Taxes). Accessed online 27 January, 2011.