Liberty Tax Service has over 4,300 retail offices operating in the United States and Canada. It specializes in the preparation of tax returns for individuals and small businesses. It was established in 1998 by John Hewitt, the co-founder of the Jackson Hewitt and a former regional director of the H&R Block tax preparation service companies. Liberty Tax Service prices are fairly competitive, plus they come with attractive promo offers and discounts.
However, less than a hundred of the company’s outlets are actually company-owned. Hewlett publicly announced that Liberty Tax Service will eventually become 100-percent franchised in the future. Currently, it is the third largest tax service franchise company in the world.
The following Liberty Tax Service prices are estimates only.
|Single W2 (No Home with 0 dependent)||$230.00|
|Single W2 (With Home + 0 dependent)||$230.00|
|Joint W2 (0 Dependent)||$230.00|
|Self Employed (0 dependent)||$400.00|
Business Tax Returns
|Incorporated, Corporated, LLC (Starting Price)||$400.00|
Liberty Tax Do-It Yourself Software
|Best for Simple Returns||$14.95|
|State Returns Available (EZ)||$29.99|
|Best for Familes||$28.95|
|State Returns Available (Basic)||$35.95|
|Best for Investors||$43.95|
|State Returns Available (Deluxe)||$35.95|
|Best for Small Business Owners||$69.95|
|State Returns Available (Premium)||$35.95|
Tax Preparation and Other Financial Products
Liberty Tax Service offers assisted tax preparation service, including year-round support, audit assistance and free review of tax returns, at any of its over 4,000 brick-and-mortar outlets. It also has hundreds of offices across the country that are certified in the handling of Spanish-speaking customers.
Aside from the physical locations, customers can avail of the company’s online facilities including a free “DIY Tax” portal for those with simple tax returns to file. It has an “e-Smart Tax” and “Liberty Online” both of which come with a free basic as well as fee-based deluxe and premium editions for homeowners and small business owners, respectively. The difference of “Liberty Online” from the relatively cheaper “e-Smart Tax” is that here, consumers who may need professional assistance on certain issues can continue filing their return at a Liberty Tax office where he can be given hands-on guidance by an in-house tax expert.
Whether on-site in a brick-and-mortar outlet or online, customers can get compliance assistance with the Affordable Care Act. Take note that in 2016, the penalty for non-compliance will already be 2.5% of taxable household income or $695 per adult and $347.50 per child, whichever is greater. Eligible customers can also opt to receive a Refund Anticipation Loan (RAL) or a Refund Anticipation Check (RAC) online or otherwise.
Additionally, Liberty Tax Service is an IRS-certified course provider which offers creditable training for tax professionals on basic and advanced tax courses to maintain professional competency.
The company, aside from its tax preparation services, also sells a cloud-based proprietary accounting software for small businesses.
Prices and Fees
Compared with what CPAs and professional accounting firms normally charge, most home and small business owners can get more value for their money with Liberty Tax Service, as may be seen from the following price schedule [to be supplied by client]. The company also offers attractive special deals. For instance, you can get $50 in cash in-store if you file your returns at Liberty. You can also receive an additional $50 cash in-store or $10 online for every friend you refer to the company.
Aside from Liberty Tax Service fees from its tax preparation services and other financial products, the company derives substantial revenue through franchise marketing. Investing in a franchise costs only between $53,800 and $66,900. Since the company is in the Small Business Administration’s (SBA) Franchise Registry, prospective owners can even avail of an SBA loan to finance the franchise aquisition. Liberty’s proprietary tax preparation software is also easy to use that franchisees only need average tax knowledge to start their own business. Finally, because tax prepartion is seasonal, if they have a good, they can go into notary services, bookkeeping and other related income-generating activites for the remainder of the year.
Pros and Cons
In terms of advantages, Liberty Tax Service offers both affordability and easy accessibility. For home and small business owners, it may be the ideal solution. For those who need to file more complex tax returns, they may however need to look elsewhere. Since most of the company’s outlets are franchise-operated, and since most of the work in these outlets is just seasonal, it may be that the pool of qualified employees available to help you in the event you are audited may already be limited when you need them most.
For more information about Liberty Tax Service, visit their official website.