Liberty Tax is a solid choice for tax software. The cost to file a federal return is lower than TurboTax and H&R Block. One of the biggest drawbacks to Liberty is that, unlike with many tax programs, you have to pay to file a basic 1040EZ return. If you want to file a 1040A or itemize your deductions, you’ll need to use the basic version, which costs $24.95. This is the version we tested. The deluxe version, which costs $44.95, is best if you have investment income. Liberty recommends that small business owners use the premium version, which costs $69.95.
This tax software allows you to import a W-2 through either ADP or Equifax. We like having this feature; it saves time and keeps errors to a minimum. You can also import a previous return, which will auto-populate personal information.
Liberty Tax is a simple program that’s generally easy to use. We especially like the floating section that auto-fills with questions relevant to the section of the review we were filling out. It offered explanations for the deductions or credits we were adding to our return.
One drawback with the program is that it only flags errors at the end, and it doesn’t clearly mark where in the return they are. You’ll have to click back through your return to find the error. Some of the other programs we tested handle this better, either by sending you to the screen in error was on or having a pop-up box to correct the error.
As you fill out the return, there are upsells for audit protection and ID protection. Audit protection costs $14.95. With this feature, Liberty Tax will advise you on how to best prepare for an audit and what documents you’ll need to find. One nice thing about Liberty Tax is it shows your risk of being audited.
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Refunds can be received through direct deposit, check or prepaid card. Direct deposit is the quickest way to get your money. A check usually takes a few weeks to arrive.
Liberty Tax doesn’t offer a free version, even for 1040EZ returns. It’s a good program that has helpful tools for answering questions as you file your deductions, but its prices do put it at the higher end of the programs we reviewed.