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Liberty Tax Service Review – Fast and Affordable

Liberty Tax Service Review

If you ever drive around your town near tax time, you’re probably familiar with Liberty Tax Service.  These franchised tax preparation offices are known for hiring young men and women to stand outside their offices dressed as the Statue of Liberty or Uncle Sam, waving signs intended to lure you into their offices.  The company opened its first U.S. office in 1998 and haha since expanded to nearly 5000 offices nationwide. Liberty Tax Service is said to provide a great business opportunity for those who are interested in buying a franchise, and they offer both in-office and online tax preparation services.  As their in-person tax preparation services are similar to those offered by other companies, we’ll offer a Liberty Tax Service review of their online software.

Liberty Tax Service Overview

Liberty Tax Service Review

As with most tax preparation software, Liberty Tax Service offers multiple versions of the product in order to suit the various needs of their customers.

Liberty Tax Service review Free Edition

The free edition of Liberty Tax Service is a basic, no-frills version intended to be used by taxpayers who would ordinarily file a 1040 EZ form.  You won’t be able to claim deductions or business expenses using this version, but it does include:

Affordable Care Act forms
Free tech support via e-mail and chat
Access to prior years’ returns
The download of W2 forms
Credit Maximizer
Child and Dependent Care
Earned Income Credit

Liberty Tax Service Basic Edition

File Income Taxes

The Liberty Tax Service Basic Edition includes everything in the Free Edition, along with the ability to itemize deductions, handle health savings accounts, and the ability to handle self-employment income and business expenses.  The cost for this version was most recently $19.  As with the free version, state tax returns include an additional charge.

Liberty Tax Service Deluxe Edition

The Liberty Tax Service review Deluxe Edition includes everything listed above, but is tailored for homeowners and investors. Those who purchase this version of the software will be able to file returns that include interest income, sole proprietor income, home office deductions, and depreciation on business equipment. The cost for this version of Liberty Tax Service was most recently $29; state returns include an additional fee.

Liberty Tax Service Premium Edition

The Liberty Tax Service Premium Edition includes everything listed above but is best used by those who own small businesses.  This version of the software handles rental income, S Corporations, gains, profit and loss, the sale of a home, and sales of business assets. The price for this version was most recently $39, with an additional fee for state tax returns.  This version of the Liberty Tax Service review software also comes with audit assistance; if you are audited, Liberty Tax Service will correspond with the IRS on your behalf.

Liberty Tax Service review Pros and Cons

Tax Resistance

Pros

The online Liberty Tax Service is easy to use; you simply create an account, log in and choose your version. The service is online, so there’s nothing to install.  Many taxpayers will be able to use the free version.  Liberty Tax Service has thousands of offices nationwide, so if you get into a bind, you can talk to someone in person for help.  Additional support is available online. 

Cons

The biggest problem taxpayers may face when using Liberty Tax Service or any other software isn’t a problem with the software itself.  It’s something to do with tax preparation in general.  Most tax software is quite good at handling basic deductions, but the U.S. tax code is incredibly complex, running tens of thousands of pages.  The code has numerous changes every year. While most tax software keeps up with the changes, it can’t know everything.

Tax software isn’t enough. You need a tax preparation strategy that will help you save the most that you can legally save on your taxes. You could buy books that help you do that, but books become obsolete as soon as they’re printed.

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