By Robert Pore
robert.pore@theindependent.com

Heineman said e-filings in 2007 increased by more than 4 percent.

"The ability to file and pay taxes online is another way our state is providing the services Nebraskans need, while also helping ensure greater efficiency in government," he said. "E-filing is a quick, convenient way citizens can help cut costs at the state level."

Electronic filing allows most taxpayers who submitted a state tax return last year to file their Nebraska short form (Form 1040NS) or long form (Form 1040N) free via the Nebraska Department of Revenue's Web site, www.revenue.ne.gov.

In 2007, the state received roughly 532,000 electronic income tax filings, which was up 4.23 percent from the previous year's electronic returns. More than 62 percent of all Nebraska tax returns were filed electronically last year.

Of the 41 states reporting e-filing statistics, Nebraska was ranked sixth in the nation based on the percentage of e-filers for tax year 2006, Heineman said.

He said the state's Revenue Department has set a goal of seeing 70 percent of state tax returns filed electronically during 2008.

Of the 200,000 state income tax returns filed so far this year, Heineman said, 180,000 have been submitted using NebFile, the e-file system developed by the state.

"With 90 percent of returns coming in via e-file so far, we're on our way to meeting our goal, and we hope that more taxpayers will consider using our NebFile system this year," said Doug Ewald, state tax commissioner.

Ewald said e-filing is quicker and more efficient, along with reducing the risk of errors and providing immediate confirmation that a return has been received.

He said taxpayers entitled to a refund who e-file and choose to have their refund returned via direct deposit typically see the money deposited in their bank account in seven to 10 business days.

The increase in e-filing has helped the state Revenue Department achieve greater efficiency by reducing reliance on temporary workers at tax time, Ewald said.

Seasonal employees are expected to total 60 this year, he said, down from 150 a decade ago.

"Better technology, streamlining, e-filing, and tax payments made via electronic funds transfers have also helped Revenue trim full-time staff needs in recent years," Ewald said.