As the tax filing date approaches, you are likely to seek the help of a professional who will be able to assist you and thus save time and avoid IRS penalties. There are a few companies that are dedicated to helping people with personal and business tax preparation such as Liberty Tax. Before requesting professional services you should know How much Liberty Tax charges
Liberty Tax is a very popular tax preparation company in the United States and Canada. The company has been in business since 1998 and has grown steadily, currently having over 3000 offices in both countries, and is the third largest tax preparation franchise in the United States.
How does Liberty Tax work?
Liberty Tax offers multiple options for filing income tax returns online. In addition, if you prefer, you can receive help in person at one of the 3,000 offices available. The best thing about this company’s professional service is that if you want an expert to review your tax returns, you won’t have to pay extra, as Liberty Tax offers free double-check services at some locations.
On the other hand, Liberty Tax offers audit help if you need it, with a 100% tax calculation accuracy guarantee, and covers penalties and interest from the IRS if there are mathematical errors in the preparation of your taxes. This company’s service includes reimbursement of tax preparation fees if another professional could provide greater savings on your tax bill.
How much does the Liberty Tax service cost?
Liberty Tax offers three different options for filing tax returns online, a basic plan, a deluxe plan, and a special premium plan for those who are self-employed, small business owners, or real estate investors.
Basic Service
Liberty Tax’s basic tax preparation service costs $44.95 for federal returns and $36.95 for state returns. This plan includes Forms 1040 and 8853, as well as Schedules A and B. With this service, you will not be able to itemize deductions or claim investment or retirement income.
This plan is suitable for single or married individuals with no dependents and your income must be less than $100,000. With this plan you can claim your earned income tax credit even if you received a taxable scholarship, earn tips, or receive dividends from the Alaska Permanent Fund.
Deluxe Service
The Deluxe service costs $64.95 for federal returns and $36.95 for state returns. This plan includes Forms 1040, 4562, 8829, 4136, 8839, and 8853, as well as Schedules A, B, and C. This service may be right for you if you have capital gains from investments or are retired. With this plan, you can make tax claims for education or deductions for IRA contributions, alimony payments, or retirement expenses.
It is the ideal service for you if you have had many medical expenses during the year, high mortgage interest payments, or many deductible expenses that exceed the standard deduction.
Premium Service
The premium plan costs $89.95 for a federal return and $36.95 for a state return, with the premium service you will be able to file a wide variety of forms and schedules. It includes Forms 1040, 4562, 4136, 4684, 4835, 8839, and 8853, plus Schedules A, B, C, E, F, and K-1. This is the tax preparation service you should choose if you have earnings from self-employment or need to take business deductions.
You should also use this plan if you receive income from rental property or farming or if you received an inheritance, undeclared tips, or income from other unusual sources. If you owe income taxes on more than $100,000 in income, you should also opt for the premium tax filing service.
What are the advantages of Liberty Tax?
Liberty Tax services have some important advantages, especially for people with complex tax situations.
Personalized Assistance
If you feel you can’t do the process yourself or you get stuck somewhere in the process, you can transfer all of your Liberty forms online to a Liberty Tax office where a professional can help you complete the tax filing process.
Free Double-Check
You can take your tax return to one of Liberty Tax’s 3,000 offices with this service and a professional will review it for free.
Guarantees
Liberty Tax promises to refund tax preparation fees if another online service shows that you didn’t get your best tax bill discount. In addition, the company offers an accuracy guarantee and can refund penalties and interest if your math calculations are not correct and the IRS imposes a penalty.
Simple Software
The software allows you to complete your forms in 15 minutes, and you can import past returns to make filing your taxes easier. The software is designed to ask questions to help you complete your forms.
Disadvantages of Liberty Tax services
There are also some disadvantages to the tax preparation services offered by this company.
Cost of state returns
State tax returns cost $36.95, so each state tax return you are required to file will cost that much.
No free option
There are some online services that offer a free option for tax preparation, but Liberty Tax does not have a free plan. If your earnings are less than $72,000 and you qualify for free online filing you may find other services with this option.
Consumer Complaints
Most of the complaints people file about Liberty Tax services relate to in-person tax filing services and not online tax filing. This may be important to you if you plan to visit one of the offices for some assistance.
References
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Rollenhagen, Luisa. “Liberty Tax: What You Need to Know | Wealthsimple.” Wealthsimple: Investing, Regulated Crypto, Stocks & ETFs, https://www.wealthsimple.com/en-ca/learn/guide-to-liberty-tax.
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Farrington, Robert. “Liberty Tax Online Review 2022 | Mid-Tier Tax Software With 360o Support.” The College Investor, 18 Jan. 2022, https://thecollegeinvestor.com/23714/liberty-tax-online-review/
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“Liberty Tax 2022 (Tax Year 2021) Review | PCMag.” PCMAG, https://www.pcmag.com/reviews/liberty-tax.
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“Liberty Tax Review [2022]: How Much Does It Cost and Is It Right For You? | FinanceBuzz.” FinanceBuzz, https://www.facebook.com/FinanceBuzzOfficial, 12 Jan. 2021, https://financebuzz.com/liberty-tax-review.