Liberty Tax Online is a digital, brick-and-mortar hybrid company. Its online presence is powered by Drake Software company which owns and operates 1040.com.
In 2022, filers interested in Liberty Tax can have a Liberty Tax tax professional file taxes on their behalf or they can use the company’s online tool to file for them. This review focuses on Liberty Tax's online filing software.
See how it compares to the other best tax software options this year.
Quick Summary
- Liberty Tax is no longer offering its "Double-Check Guarantee"
- Multiple support channels including help from a "Virtual Tax Pro"
- Higher price point than most other tax software options
Liberty Tax Online Details | |
|---|---|
Product Name | Liberty Tax Online |
Federal Price | Starts at $24.95 |
State Price | $36.95 per state |
Preparation Type | Self-prepared |
Promotions | None |
Liberty Tax Online - Is It Ever Free?
No, Liberty Tax Online doesn’t offer a free filing option. All users pay for both state and federal filing. But you can “start filing free” to get a feel for the software.
What's New In 2022?
In 2022, Liberty Tax reverted from it’s "one price for all" structure to a tiered pricing structure. Those with basic tax situations pay less than those with more complex situations.
We were also really bummed to find that Liberty Tax did away with its “Double Check” guarantee where local tax professionals could review returns before users filed.
On the software side, the look and feel remain fairly similar to previous years. However, the tax accounts for new tax situations such as the stimulus payment and Advance Child Tax Credit Payments.
Questions about economic impact payment
Does Liberty Tax Online Make Tax Filing Easy In 2022?
Liberty Tax online offers a decent user experience for many filers. Users can’t import forms into the software, but the software makes it easy to claim the most common deductions and credits.
But issues start to crop up for filers with more complex tax situations. For example, Rental Income is buried in the “Other Income” section. Adding depreciation for the properties requires looking up a depreciation form and filling it out without much feedback. Users don’t even learn the total amount of depreciation ultimately calculated.
Investors with stock or crypto trades will also find the software cumbersome to use. Since they won't be able to import 1099 forms, they'll have to enter each trade manually. This takes a lot of time and can be complicated.
It’s worth noting that many companies, including 1040.com and Jackson Hewitt Online, use the same software as Liberty Tax online. It's a white-labeled version of software offered by Drake Software. The competitor software is much less expensive and is identical other than branding.
Liberty Tax Online Notable Features
Liberty Tax Online doesn’t have many standout features, but it does rely on a “hybrid navigation model" that enhances usability. Users can decide between a question and answer style navigation, or they can choose to guide themselves.
The interview questions, in particular, help users access the right part of the software without getting bogged down in confusing menus. This is a useful navigation style for most people with straightforward returns.
Support from tax experts is another area where Liberty Tax shines. While it no longer offers its "Double Check Guarantee," it still advertises that online filers can access in-person support from tax pros at any of its more than 3,000 local offices. Liberty Tax also has a "Virtual Tax Pro" option which lets you do your taxes yourself, but with the guidance of a Liberty Tax expert.
Liberty Tax Online Notable Drawbacks
Liberty Tax Online had several problematic areas in 2022.
No Form Import Options
Most premium tax software allows users to import W-2 and 1099 forms. Liberty Tax Online charges premium prices, but it doesn’t support imports other than tax returns that have been filed with competitors.
Cumbersome For Complex Tax Situations
Filers with rental income or trades will want to stay away from this software. While Liberty Tax Online technically supports these tax situations, users have to seek out calculators and forms by searching in the help section.
No Section Summaries
Section summaries allow users to track their progress and ensure they haven’t missed anything. Unfortunately, Liberty Tax Online software doesn’t have any which makes it tough for filers to figure out whether they’re doing everything correctly.
Liberty Tax Plans And Pricing
Liberty Tax moved to a tiered pricing structure this year with three plans to choose from: Basic, Deluxe, and Premium. Here are the prices of all three plans:
Plan | Basic | Deluxe | Premium |
|---|---|---|---|
Best For: | W-2 Income, no children and no HSA contributions | Claiming deductions and credits, stock trades | All other tax situations |
Federal Price: | $24.95 | $44.95 | $64.95 |
State Price: | $36.95 per state | $36.95 per state | $36.95 per state |
Total: | $61.90 | $81.90 | $101.90 |
It should be noted that in prior years, Liberty Tax has offered a variety of promotions that have significantly discounted the price.
How Does Liberty Tax Compare?
We compared Liberty Tax Online to other bargain tax prep companies, including 1040.com which uses the same underlying software. The other competitors are TaxHawk and Cash App Taxes which both offer a superior experience compared with Liberty Tax Online.
Header | |  |  |  |
|---|---|---|---|---|
Rating | ||||
Stimulus Credit | Basic | Free | Free | $25 |
Unemployment Income (1099-G) | Deluxe | Free | Free | $25 |
Student Loan Interest | Deluxe | Free | Free | $25 |
Import Last Year's Taxes | Basic | Free | Free | $25 |
Snap a Picture of W-2 | Not Supported | Not Supported | Not Supported | Not Supported |
Multiple States | Basic | Not Supported | $14.99 Per State | $25 |
Multiple W2s | Basic | Free | Free | $25 |
Earned Income Tax Credit | Basic | Free | Free | $25 |
Child Tax Credit | Deluxe | Free | Free | $25 |
HSAs | Deluxe | Free | Free | $25 |
Retirement Contributions | Deluxe | Free | Free | $25 |
Retirement Income (SS, Pension, etc.) | Deluxe | Free | Free | $25 |
Interest Income | Deluxe | Free | Free | $25 |
Itemize | Deluxe | Free | Free | $25 |
Dividend Income | Deluxe | Free | Free | $25 |
Capital Gains | Deluxe | Free | Free | $25 |
Rental Income | Deluxe | Free | Free | $25 |
Self-Employment Income | Premium | Free | Free | $25 |
Small Business Owner (Over $5k In Expenses) | Premium | Free | Free | $25 |
Audit Support | Basic | Free | Deluxe | $29.95 Add-On |
Advice From | Available | Not Available | Available With The "Pro Support" Plan | Not Available |
First Tier Cost | Basic | Free $0 Fed & | Free | $25 |
Second Tier Cost | Deluxe | N/A | Deluxe | N/A |
Third Tier Cost | Deluxe | N/A | Pro Support | N/A |
Cell |
How Do I Get Support From Liberty Tax Online?
LibertyTax relies on a “360-degree” support model. Users can use the software’s “Tell Me More” buttons to learn more about tax topics, send emails to libertyonlinesupport@libtax.com, or live chat.
You can also visit one of Liberty Tax's 3,000+ local offices to get questions answered. Or if you get stuck and can't finish online, you can seamlessly transition from online filing to in-person filing with a tax pro.
Finally, LibertyTax comes with Audit Assistance for all users. That means a LibertyTax professional will help you respond to IRS inquiries if you are faced with an audit.
Is It Safe And Secure?
Liberty Tax Online allows users to enable multi-factor authentication and encrypts 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 could suffer a security breach. Filers must evaluate the risks of using any online software before committing to a provider.
Liberty Tax FAQs
Here are the answers to some of the questions that we get asked most frequently 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 individually entered on a screen before the next trade can be added. Most crypto traders should consider TurboTax Premium for their filing needs.
Can I request my stimulus check through Liberty Tax Online?
Yes, Liberty Tax Online asks users about the third economic impact payment. If a user is eligible for it, the software claims the Rebate Recovery Credit on behalf of the filer. Any additional funds will be added to the filer’s annual refund check. Filers who didn’t receive stimulus checks in 2020 need to file a 2020 amended return to claim their checks.
I didn’t receive the full amount for Advanced Child Tax Credit Payments. Can Liberty Tax Online help me get the rest?
Yes, Liberty Tax Online helps users claim their full child tax credit. Filers who received advance payments will need to enter information from IRS Letter 6419 to adjust the full amount they should receive.
Can Liberty Tax Online help me with state filing in multiple states?
Yes, Liberty Tax Online supports multi-state filing. Users must pay $36.95 per state.
Does Liberty Tax Online offer refund advance loans?
Liberty Tax Online users in several states can apply for a refund advance loan. But filers should steer clear of these loans as they have effective interest rates as high as 199% APR.
Is It Worth It?
In 2022, Liberty Tax has high prices and offers little in return. Rather than going with this option, filers should check out the best tax software for their situation. Filers should also stay away from Liberty Tax’s loans which have sky-high interest rates.
Liberty Tax Online Features
Federal Cost | Starts at $24.95 |
State Cost | $36.95 per state |
Pay With Tax Refund | Yes, an additional fee will apply |
Audit Support | Yes, included on all tiers |
Support From Tax Pros | Available |
Full Service Tax Filing | Not available |
Printable Tax Return | Yes |
Import Tax Return From Other Providers | Yes |
Import Prior-Year Return For Returning Customers | Yes |
Import W-2 With A Picture | No |
Stock Brokerage Integrations | None |
Crypto Exchange Integrations | None |
Self-Employment Income | Yes |
Itemize Deductions | Yes |
Deduct Charitable Donations | Yes |
Refund Anticipation Loans | Yes, loan amounts ranger from $500 to $6,250 |
Customer Service Options | Email, Live Chat, In-Person Support |
Customer Service Email | libertyonlinesupport@libtax.com |
Web/Desktop Software | Yes |
Mobile Apps | iOS and Android |
Promotions | None |
Liberty Tax Online Review
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Navigation
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Ease Of Use
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Features And Options
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Customer Service
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Pricing
Overall
Summary
Liberty Tax Online’s tax software is effective and comes with multiple levels of support. However, there may be more user-friendly options.
Pros
- Guided interface works well for simple filing situations
- Filers can work with a Virtual Tax Pro
- Easy to transition to in-person filing
Cons
- Difficult to accurately enter trades and rental income
- No section summaries
- Prices are on the high end
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
