About Liberty Tax
Liberty Tax (NASDAQ: TAX) is a tax preparation franchise. Liberty Tax's online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of tax preparers.
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Latest Liberty Tax News
Jan 10, 2023
January 10, 2023 - Advertisement - Liberty Tax Online is a brick-and-mortar tax preparation service with white-label online tax filing tools. Its online presence is powered by Drake Software, which owns and operates 1040.com. - Advertisement - In 2023, filers interested in Liberty Tax can have a Liberty Tax tax professional file on their behalf or use the company’s online tools to file for them. This review focuses on Liberty Tax’s online filing software. - Advertisement - See how it compares to the other best tax software options this year. Liberty Tax is no longer offering its “Double-Check Guarantee” which includes higher price points than many other tax software options, including help from “Virtual Tax Pro.” - Advertisement - Liberty Tax Online – Is It Ever Free? No, Liberty Tax Online does not offer a free filing option. All users pay for both state and federal filings. But you can “start filing free” to get a feel for the software and not pay until you file. For basic returns, online pricing starts at $45.95 plus $36.95 per state. What’s new in 2023? Liberty Tax software has mostly the same look and feel as in previous years. As with all competitors, you will see updates on new tax laws and changes. These include updated tax brackets and new limits for credits and deductions. If you want the convenience of online filing while doing all the hard work done in person at a Liberty Tax office, you can use the File Your Taxes Remotely program. However, in this review, we are primarily focused on the DIY option in this Liberty Tax 2023 review. The biggest change we saw was pricing, which increased by about $20 for all filing packages. Does Liberty Tax Online Make Tax Filing Easier in 2023? Liberty Tax Online provides a great user experience for many filers. However, you can’t import forms into the software, which means you’ll need to enter your tax data manually. The software makes it easy to claim the most common deductions and credits. Problems begin to arise for filers with more complex tax situations. For rental properties including depreciation, one needs to look at the depreciation form and fill it out without any feedback. Users do not even calculate the total amount of depreciation in the end. Investors with active stock or cryptocurrency accounts will find the software cumbersome. Because you cannot import 1099 forms or data spreadsheets, each transaction must be added manually. This is a time consuming and error-prone process. It’s worth noting that several companies use software similar to Liberty Tax Online, including 1040.com and Jackson Hewitt Online. It is a white labeled version of the software offered by Drake Software. Competing software is much less expensive and is similar except for branding. Liberty Tax Online Features Liberty Tax Online has some special features. One good offering is a “hybrid navigation model” where you can decide between question-and-answer style navigation or self-guided tax preparation. Interview questions help you reach the right part of the software without getting bogged down in confusing menus. This is a useful navigation style for most people with direct returns. Support from tax experts is another area where Liberty Tax differs from the pack. It no longer offers its “Double Check Guarantee,” but it still advertises that online filers can get in-person help from tax professionals in more than 3,000 of its local offices. Liberty Tax also has a “Virtual Tax Pro” option that lets you do your own taxes under the guidance of a Liberty Tax expert. Liberty Tax Online Drawbacks no form import option The best premium tax software allows you to import W-2 and 1099 forms. Liberty Tax Online charges premium pricing but does not support importing other than prior-year full tax returns for comparison. Cumbersome for complex tax situations Filers with rental income or trades would want to stay away from this software. While Liberty Tax Online technically supports these tax situations, users should look for calculators and forms by searching in the Help section. no section summary Section summaries allow users to track their progress and ensure they haven’t missed anything. Unfortunately, the Liberty Tax Online software doesn’t have this, making it hard for filers to know if they’re doing everything right on the end. This is a major pitfall that leaves filers scrambling to find where they made a typo or mistake. Liberty Tax Plans & Pricing Liberty Tax moved to a tiered pricing structure with three plans to choose from: Basic, Deluxe, and Premium. Typically, each tier is $10 higher. Here are the current prices for all three plans: W-2 income, no children, and no HSA contributions Claiming Deductions and Credits, Stock Trading It should be noted that in past years, Liberty Tax has offered a variety of promotions that significantly discounted the price. How does Liberty Tax compare? We compared Liberty Tax Online to other bargain tax prep companies, including 1040.com, that use similar built-in software. Other competitors are TaxHawk and Cash App Tax which both offer a better experience than Liberty Tax Online. header How do I get support from Liberty Tax Online? LibertyTax relies on a “360-degree” support model. To learn more about tax topics, users can use the software’s “Tell me more” button, email [email protected] or live chat. You can also visit one of their 3,000+ local offices to get questions answered. Or if you get stuck and can’t complete online, you can transition from online filing to in-person filing with Tax Pro. Lastly, LibertyTax comes with audit support for all users. This means that a LibertyTax professional will help you respond to IRS inquiries should you face an audit. Is it safe and secure? Liberty Tax Online allows users to enable multi-factor authentication and encrypt all data entered into the software. Overall, the software meets industry standards for safety and security. Of course, no company can guarantee 100% safety and security of its website. The company may face a security breach. Filers should evaluate the risks of using any online software before committing to a provider. Be sure to use unique, secure passwords on each website to keep the bad guys out of your data. Liberty Tax FAQs Here are answers to some of the most frequently asked questions about online tax software companies like Liberty Tax Online: Can Liberty Tax Online help me file my crypto investments? Users can enter their crypto trades using Liberty Tax Online, but the process is cumbersome. Each trade has to be entered individually on a screen before the next trade can be added. Most crypto traders should consider TurboTax Premium for their filing needs. Can Liberty Tax Online help me with state filing in multiple states? Yes, Liberty Tax Online supports multi-state filing. Users will have to pay $36.95 per state. Does Liberty Tax Online offer refund advance loans? Liberty Tax Online users in many states can apply for a refund advance loan. But filers should stay away from these loans as their effective interest rates are as high as 199% APR. is it worth it? In 2023, Liberty taxes high prices and offers little in return. Instead of going with this option, filers should investigate the best tax software for their situation. Filers should also stay away from Liberty Tax loans that have skyrocketing interest rates. Try Liberty Tax Online >>
Liberty Tax Frequently Asked Questions (FAQ)
When was Liberty Tax founded?
Liberty Tax was founded in 1997.
Where is Liberty Tax's headquarters?
Liberty Tax's headquarters is located at 1716 Corporate Landing Parkway, Virginia Beach.
What is Liberty Tax's latest funding round?
Liberty Tax's latest funding round is Reverse Merger.
How much did Liberty Tax raise?
Liberty Tax raised a total of $13M.
Who are the investors of Liberty Tax?
Investors of Liberty Tax include Nextpoint Acquisition, Edison Partners, BMO Capital, SunTrust Equity Partners, Envest Private Equity and 3 more.
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