State officials say without question e-file is the preferred method for most taxpayers this year.

“We have almost 5 ¾ million e-file returns out of about 8 ½ million total that we’ve received, so e-file is setting the early pace.” Franchise Tax Board spokesman Patrick Hill says they expect a little over half of all 14-Million state returns to be filed electronically. And he says ultimately that’s good news for California tax payers. “For every return that we receive electronically, the state saves about $1.00.”

Hill says their goal is to have 60% of tax returns filed electronically by 2010.