Liberty Tax Review: Should You File With Liberty Tax This Year?

Liberty Tax review

However you choose to file your taxes this year, Liberty Tax Service aims to provide you with the feeling of a personal tax consultant. Plus, you can find tax services for simple returns, families, business owners, and investors.

You can also use Liberty Tax’s online tools like the tax estimator and withholding calculator to predict your returns. And you can even learn more about the tax preparation process by attending the tuition-free Liberty Tax School.

Whatever your filing status, read this full Liberty Tax review to learn whether Liberty Tax is right for you.

Liberty Tax review

With Liberty Tax, you’ve got two options for filing your yearly taxes.

First, you can visit one of Liberty Tax’s offices. There are over 4,000 in the U.S. and Canada. Once you’ve found a convenient location, request an appointment. Keep in mind that services vary by location. Most offices offer personal tax and business tax preparation.

Your second option for Liberty Tax services is to file your taxes online. You can set up an account and go through the process, step by step. Liberty Tax Service offers four online tax preparation packages: the EZ, Basic, Deluxe, and Premium packages. All come with free online chat support, while the Deluxe and Premium packages also include hands-on support from tax experts.

Whatever you choose, Liberty Tax will print and bind two copies of your returns for you, as well as store your returns for five years.

In addition to other Liberty Tax services, the company offers guidance in the event you’re audited.

How much does it cost to file with Liberty Tax products?

Costs vary depending on how you choose to file with Liberty Tax. Ultimately, filing in-person will cost a good deal more than filing online. However, exact prices will depend on the service you choose.

With online Liberty Tax packages, prices range from $14.95 to $69.95.

As you can see, simple tax returns cost the least. And if you had one job all year, then you can likely file your taxes easily at a low cost.

The more complicated your taxes, the more you’ll likely have to pay to file. Business owners have extra costs, plus you’ll likely spend more if you’re an independent contractor or investor.

Keep in mind that with the extra cost, you’ll receive expert guidance for your complex tax situations.

Which Liberty Tax product is right for you?

Liberty Tax Service offers four packages for filing your taxes online: the EZ, Basic, Deluxe, and Premium products. So how do you know which level is right for you?

1. EZ Package

The EZ package is best for simple, straightforward returns. If you’re filing a 1040EZ or Schedule B, you’ll use this version.

You’ll also get free chat and tech support if you have any questions on filing or using the program. If you’ve filed with Liberty Tax before, then you can import your information from the previous year.

However, the EZ package doesn’t let you make itemized deductions. If you have additional forms to submit, then you’ll need to upgrade to a higher level product.

2. Basic Package

The Basic Package offers all of the services of the EZ package, along with several more. With the Basic package, you can make itemized deductions.

This version is especially good for people who are self-employed, have business expenses, or need to report on ordinary income.

If you’re an independent contractor filing with a 1099, for instance, then you’ll need to choose the Basic level package or higher. You’ll also need it if you’re filing form 1040 or Schedule A or B.

3. Deluxe Package

If your tax situation is even more complex, then you may need to go with the Deluxe package. The Deluxe package is for people filing forms 1040, 4562, or 8829 and Schedule A, B, or C.

It also allows you to make home office deductions. So if you work at home, then you can deduct expenses from your home office.

And if you’re a sole proprietor, then you can report your business’s activity. Plus, anyone with valuable assets can add their depreciation value.

4. Premium Package

The Premium package is best for small business owners. If you’re filing forms 1040, 4562, 8829 or Schedules A, B, C, E, F, or K-1, then you should go with the Premium Package.

In addition to sole proprietor income, you can report on real estate income, corporate gains or loss, or the sale of your home.

With the Premium Package, you’ll receive expert tax assistance to help you navigate the intricate process of filing.

Liberty Tax: File Today!

Use Liberty Tax to file your taxes online in 7 steps

1. Set up your account

The Liberty Tax Service online software is relatively intuitive and easy to use. To get started, you first need to set up an account with a username and password.

Then you’ll also choose three security questions to plug in. After entering your verification code, you can log in and begin filing.

2. Choose the EZ, Basic, Deluxe, or Premium package

Next step is choosing the package you want to use. If you accidentally choose the wrong one, you can upgrade at a later time.

3. Enter your personal information

You are then required to enter your personal details. You will write in your name, address, telephone number, and social security number. Also, indicate whether you have dependents.

4. Answer a few important tax questions

Your next step is to answer some questions about last year’s taxes and your financial history. Here are the main questions:

  • On last year’s return, did you itemize and get a state refund?
  • Did you have college-related expenses for yourself or your dependents, generally reported on Form 1098-T?
  • Did you sell your primary residence?
  • Have you claimed first-time homebuyer credit in previous years?
Let Liberty Tax handle your taxes

5. File your federal taxes

Here’s where you’ll do most of your work. You’ll need all of your financial information and employment history, so gather your W-2s, 1099s, or any other forms you have before filing.

Then enter your employment history and wages over the last year. Include any information about investments, retirement accounts, business expenses, or side income.

6. File your state taxes

If you like, you can also file state taxes. You’ll choose your state of residency, as well as indicate whether you earned income in any other state in the previous year. The process here is similar to the one for your federal taxes.

7. Fix any errors and submit

Once you’ve filled everything out, head to the final tab. The program will tell you if it detected any errors. Go back and fix any mistakes before hitting submit.

Your final step is paying the fee. Then you’re all finished!

How you’ll get your tax refund

You have a few choices for Liberty Tax services when it comes to receiving your tax refund. The two main options are paper check and direct deposit.

If you request a paper check, then you’ll receive it about six to eight weeks after the Internal Revenue Service (IRS) or state accepts your tax return.

Alternatively, you can get your refund via direct deposit in your bank account. With this option, you’ll get the refund about 21 days after your return is approved.

For a full list of refund options, head to the Liberty Tax Service or IRS websites.

Liberty Tax frequently asked questions

The company compiled a list of over 30 frequently asked questions and provided useful answers to help you file successfully. A few questions you will find answers to include:

  • What documents should I receive from my employer?
  • Do I need to report work-study income if I am a full-time student?
  • What services and guarantees does Liberty Tax offer?
  • Does Liberty Tax offer tax education courses to help me prepare my own tax return?

If you still have questions or are looking for more Liberty Tax reviews, you can use the company’s online chat function to connect to a tax expert.

Liberty Tax services and support

Liberty Tax has a number of educational resources for consumers. For instance, you can use its tax and withholding calculators to estimate your refund. You can also find useful tips at the company’s Tax Lounge blog.

Liberty Tax also offers classroom and online courses to people who want to learn more about tax preparation. These Tax School courses are all free; you may just have to buy some books.

You can learn about topics like filing exemptions, itemized deductions, depreciation, student loan interest deduction, and capital gains. Students are invited to apply for seasonal work at Liberty Tax after completing a course on taxes.

Finally, you can contact Liberty Tax by phone, email, or mail for additional help. To track the status of your tax refund, check out the “Where’s My Refund?” tool.

Liberty Tax has your taxes covered

More about Liberty Tax

Tax expert John Hewitt founded Liberty Tax in the late 1990s. A renowned accountant, Hewitt has been named one of the top 100 influential people in Accounting Today 11 times. The International Franchise Association named Hewitt Entrepreneur of the Year.

His journey with Liberty Tax began in 1997, when he acquired a Canadian tax company. A year later, he opened five offices in the U.S. and renamed the company Liberty Tax Service.

With headquarters in Virginia Beach, Virginia, Liberty tax has over 4,000 offices throughout the U.S. and Canada. It has topped the lists of best tax firms in various national magazines. Liberty Tax prepares over two million tax returns every year.

According to the company, its mission is to “offer the flexibility of a personal tax consultant and the security of a large, established company.” Whether you file in-person or online, you’ll get personalized service from one of Liberty Tax’s tax experts.

See for yourself if Liberty Tax is right for you

Liberty Tax is a popular option for filing taxes among consumers. The strongest Liberty Tax services are its educational resources and in-person help. E-filing with Liberty Tax is easy, and you can get a tax refund via direct deposit quickly.

That being said, this Liberty Tax Service review revealed that the company’s user interface is not as visually appealing as some other services. Plus, it charges $10 to $15 for simple federal tax returns, where some other companies let you file them for free.

If your situation is more complex or you’re looking for expert support, though, then Liberty Tax may be the company you need. With its expert assistance, you can successfully prepare your taxes year after year.

Contact information for Liberty Tax

If you have questions about Liberty Tax’s online offices or want to connect with a professional, call or email Liberty Tax. Here is the company’s main contact information.

Finally, you can communicate with Liberty Tax Services at this address:

Liberty Tax Service
1716 Corporate Landing Parkway
Virginia Beach, Virginia 23454

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