Liberty Tax Online is a traditional tax preparation service with white label online tax filing tools. Its online presence is powered by Drake Software, which owns and operates 1040.com.
In 2023, filers interested in Liberty Tax will be able to file on their behalf with a Liberty Tax tax professional or use the company’s online tools to file. This review focuses on Liberty Tax’s online filing software.
See how this year compares to other best tax software options.
- Liberty Tax no longer offers a “double-check guarantee”
- Multiple support channels including assistance from “Virtual Tax Pro”
- Higher price than most other tax software options
Learn more about Liberty Tax Online
Liberty Tax Online – Is it free?
No, Liberty Tax Online does not offer a free filing option. All users pay a fee for both state and federal filings. However, you can “start filing free” to get a feel for the software, and you don’t have to pay until you file.
Online prices for basic returns range from $45.95 to $36.95 per state.
New for 2023
The look and feel of Liberty Tax software is nearly identical to previous years. As with all our competitors, you will receive updates on new tax laws and changes. These include updated tax classifications and new limits on credits and deductions.
If you want the convenience of filing online while doing the heavy lifting at the Liberty Tax Office, you can use the File Your Taxes Remotely program. However, this review is primarily focused on the DIY option in this Liberty Tax 2023 review.
The biggest change we’ve noticed is the price, which has increased by about $20 for all filing packages.
Will Liberty Tax Online make 2023 tax filing easier?
Liberty Tax online provides a good user experience for many filers. However, the form cannot be imported into the software. This means that you have to manually enter your tax data. The software makes it easy to claim the most common deductions and credits.
Problems start to arise for filers in more complex tax situations. For rental properties that include depreciation, depreciation forms should be consulted and filled out without much feedback. The user doesn’t even know the final calculated depreciation total.
Investors with active stock or cryptocurrency accounts will find the software cumbersome.1099 You cannot import forms or data spreadsheets, so you must add all transactions manually. This is a time consuming and error prone process.
It’s worth noting that many companies use the same software as Liberty Tax online, such as 1040.com and Jackson Hewitt Online. This is a white label version of the software provided by Drake Software. Competitor software is much cheaper and is the same except for the branding.
Features of Liberty Tax Online
Liberty Tax Online has some great features. One of the great services is the “hybrid navigation model”. This allows you to choose between question-and-answer style navigation or self-guided tax preparation.
Interview questions help you get to the right parts of the software without getting bogged down in confusing menus.
Tax expert support is another area where Liberty Tax excels. While we no longer offer a “double-check guarantee,” online filers continue to advertise that they have access to direct support from tax experts in over 3,000 local offices. Liberty Tax also has a “Virtual Tax Pro” option that allows you to tax yourself with guidance from Liberty Tax experts.
Disadvantages of Liberty Tax Online
Liberty Tax Online had some major drawbacks in 2023.
No form import option
The best premium tax software allows you to import W-2 and 1099 forms. Liberty Tax Online charges a premium but does not support imports other than completed previous year tax returns for comparison.
Difficult to handle in complex tax situations
Filers with rental income and transactions will want to stay away from this software. Liberty Tax Online provides technical support for these tax situations, but users should search the help section for calculators and forms is needed.
No section summary
Section summaries help users track their progress and make sure nothing is overlooked. Unfortunately, the Liberty Tax Online software doesn’t have this, so it’s hard to tell if the filer is doing everything right all the way through. This is a major drawback that makes filers have a hard time figuring out where they made a typo or mistake.
Liberty taxation and pricing
Liberty Tax has moved to a tiered pricing structure with three plans to choose from: Basic, Deluxe, and Premium. Each tier is typically $10 higher. Here are the current prices for all three plans:
W-2 income, no children, no HSA contributions
Claims for deductions and deductions, stock trading
Please note that over the past few years, Liberty Tax has offered various promotions that have significantly reduced prices.
How Do Liberty Taxes Compare?
We compared Liberty Tax Online to other bargain tax preparation companies such as 1040.com that use the same underlying software. Other competitors are TaxHawk and Cash App Taxes, both of which offer a superior experience compared to Liberty Tax Online.
Unemployed Income (1099-G)
Retirement allowance (SS, pension, etc.)
Small Business Owners ($5,000+ Expenses)
available in “Pro Support” plan
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” button to learn more about tax topics, email email@example.com, or live chat.
You can also visit one of our 3,000+ local offices to get your questions answered. Or, if you’re stuck and can’t complete it online, seamlessly transition from filing online to in-person filing with a tax professional.
Finally, LibertyTax comes with audit assistance for all users. This means that a LibertyTax professional can help respond to her IRS inquiries if she faces an audit.
Is it safe and secure?
Liberty Tax Online allows users to enable multi-factor authentication to encrypt all data entered into the software. Overall, the software meets industry standards for safety and security.
Of course, no company can guarantee a 100% safe and secure website. Your company could be subject to a security breach. Filers should assess the risks of using online software before committing to a provider. Use unique and secure passwords on all websites to prevent malicious users from accessing your data.
Liberty Tax FAQ
Below are answers to some of the most frequently asked questions about online tax software companies like Liberty Tax Online.
Will Liberty Tax Online help me submit my cryptocurrency investments?
Users can enter crypto transactions using Liberty Tax Online, but the process is cumbersome. Each transaction must be entered individually on the screen before the next transaction can be added. Most cryptocurrency traders should consider TurboTax Premium for their filing needs.
Will Liberty Tax Online help with state filing in multiple states?
Yes, Liberty Tax Online supports multistate filing. User must pay $36.95 per state.
Does Liberty Tax Online offer refund prepaid loans?
Liberty Tax Online users in some states can apply for a reimbursement prepaid loan. However, filers should avoid these loans due to their high effective interest rate of 199% APR.
Is it worth it?
In 2023, the price of Liberty Tax is high and the return is very little. Rather than go for this option, Filer should check out the tax software that best fits his situation.Filer should also stay away from his Liberty Tax loan with super high interest rates. .
Try Liberty Tax online >>
Features of Liberty Tax Online
Yes, there is an additional charge
Yes, included in all tiers
Importing tax forms from other providers
Import previous year returns for repeaters
W-2 Import with images
Consolidation of securities companies
Crypto exchange integration
Charitable donation deduction
Expected repayment loan
Yes, loan amounts range from $500 to $6,250
Email, live chat, face-to-face support