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.
| Service | Price |
|---|---|
W2 Form |
|
| Single W2 (No Home with 0 dependent) | $230.00 |
| Joint W2 (0 Dependent) | $230.00 |
1099 Form |
|
| Self Employed | $400.00 |
Business Tax Returns |
|
| Corporate Tax Returns | $400.00+ |
Liberty Tax Do-It Yourself Online |
|
Basic |
|
| Simple Federal Returns | $44.95 |
| State Returns | $34.95 |
Deluxe |
|
| Moderately Complex Federal Returns With Itemized Deductions | $43.95 |
| State Returns | $34.95 |
Premium |
|
| Self Employed Federal Returns | $44.95 |
| State Returns | $34.95 |
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 filing products. Although they do not offer a free online filing product, for 2020 tax returns using their do-it-yourself online filing service, Liberty Tax is running a promotion where all tiers of federal tax returns are $44.95. State returns are either $39.95 or $34.95, depending on the federal service tier you select.
Like H&R Block and Jackson Hewitt, you can import your tax information from other tax platforms to help you get a head start on the Liberty Tax platform.
All online returns include audit assistance, free double-check of your online return at an office location, and the ability to start a return online and seamlessly start working on it with a professional at a store.
They guarantee 100% accuracy, and provide email, chat, email, social and in-person support.
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 above price schedule. The company also offers attractive referral bonuses. If you do your taxes with Liberty Tax, and then refer someone else who ends up doing taxes in one of their stores, you can get a $50 referral fee.
Aside from Liberty Tax Service fees from its tax preparation services and other financial products, the company derives substantial revenue through franchise marketing. 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 acquisition. 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 preparation is seasonal, if they have a good, they can go into notary services, bookkeeping and other related income-generating activities 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.
FAQ
Does Liberty Tax charge a lot?
Single W2 (No Home with 0 dependent) – 230.00 est.
Single W2 (With Home + 0 dependent) – 230.00 est.
Joint W2 (0 Dependent) – 230.00 est.
1099 Form – Self Employed (0 dependent) – $400.00 est.
Business Tax Returns – Incorporated, Corporated, LLC (Starting Price) – $400.00 est. Click here to see more.
What other services does Liberty Tax offer?
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. Click here to see more.
What are pros and cons of using Liberty Tax?
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.
How much is basic tax return for Liberty Tax?
A simple tax situation, such as single or married with no dependents. Millions of taxpayers qualify. – $44.95 est.
