Liberty Tax Review

Benjamin Franklin once remarked that only two things were inevitable: death and taxes.

For many people, preparing one’s taxes can be a challenging, confusing, or expensive endeavor. Those challenges increase when you’re in the military as you introduce multiple types of pay and frequent relocations to the equation.

Fortunately, due to online tax software like Liberty Tax, it is now possible to use tax software to help you with this process. It is affordable, time-saving, and lowers the risk of mistakes significantly.

How Liberty Tax Works

Liberty Tax offers preparation and filing services to both private individuals and businesses.

Liberty Tax’s interface uses a step-by-step interview approach. You will have to answer questions about the property you own, your dependents, your residency throughout the year, and so forth.

The software uses your answers to determine your filing status and the schedules and forms you must import to complete your return. The platform will also detect which software version most applies to your tax situation to make a recommendation.

Liberty Tax Features

Maximum Refund Guarantee

Liberty Tax provides their clients with a maximum refund guarantee.

Liberty Tax will refund the money you paid if you submit the same return to the IRS with competitor software and receive a higher refund or lower federal tax liability.

Help Sidebar

A valuable feature that Liberty Tax offers is a help sidebar that contains several tax-filing tools. Whether you are looking to locate and contact the nearest Liberty Tax office, access the platform’s FAQ section to troubleshoot issues, start a live chat with the support team, or even see your real-time refund display, the help sidebar has you covered.

Tax Estimator

Liberty Tax’s tax estimator is a mini tax return that you can use to estimate the size of your refund or tax liability before you file.

Additional Features and Benefits

Liberty Tax offers several valuable features designed to simplify filing and maximize your return. The Credit Maximizer reviews your information to identify eligible deductions and credits, helping ensure you get back every dollar you are owed. You can also import your W-2 and previous tax return, which automatically fills in key details and reduces the risk of errors.

Users have access to expert tax advice throughout the filing process, along with free amendments if corrections are needed later. The interface is simple and easy to navigate, making it accessible even for first-time filers. Liberty Tax also provides extensive support options, including phone, chat, email, and in-person assistance at thousands of branch locations.

For those who need faster access to their money, Liberty Tax may offer an advance on your refund, which is repaid once the refund is issued.

Liberty Tax Versions

Start for Free

Liberty Tax doesn’t offer a free plan to file even the simplest returns.

What it does offer is the ability to start filling out your tax forms for free without needing to pay until you actually file them.

This allows you to take advantage of their maximum refund guarantee if you find a higher refund or lower liability with a different program.

Basic

If you have a moderately complex tax situation that includes itemized deductions and a health savings account, you can prepare and file your tax return with the Basic version.

If you are the owner of a sole proprietorship or receive income from investments, this plan will not be suitable as it doesn’t support the relevant forms, for example, Schedule C.

Features of this plan include the following:

• Schedule A support: Allows for itemized deductions.
• Schedule B support: If you made more than $1,500 in interest and dividend income throughout the year.
• Form support: For the necessary forms for health savings accounts as an alternative to an insurance plan.

Deluxe

The Deluxe plan offers all the features of the previous versions and support for Schedule C filing, which allows you to claim income from self-employment business activities, which could be ideal for military spouses with freelance income.

This plan does not accommodate complex tax situations like income from property, and it is unsuitable for filing capital gains or losses.

If you select this plan, Liberty Tax will provide you with Pro Tax Support without requiring you to pay the prescribed fee that other clients pay.

Premium

The Premium version is geared toward allowing people with complex tax situations to prepare and file their tax returns.

This plan supports filing for capital gains and losses from small business activities and property sales, as well as income from rental property and farming.

This version also supports Schedule K-1, which allows you to report business income as a shareholder in an S-corporation or private partnership.

Cost

Liberty Tax’s pricing is as follows:

• Basic: $47.95 federal + $36.95 state
• Deluxe: $67.95 federal + $36.95 state
• Premium: $87.95 + $36.95 state

Pricing is subject to change throughout the tax season. Check Liberty Tax’s website for the most up-to-date pricing.

Special Pricing for Service Members

When visiting any of Liberty Tax’s 2,000+ locations nationwide to have your taxes done in person, you may be eligible for special pricing. Active duty, retiree, and veteran members of the U.S. Military are eligible to receive discounted pricing at participating Liberty Tax locations.

The discount is not available for online tax preparation, and eligibility and pricing are up to individual locations’ discretion.

Should You File with Liberty Tax?

Let’s walk through some of the pros and cons of filing your taxes with Liberty Tax.