Liberty Tax

If your financial and tax situation is what you’d call ‘basic’ you may qualify for this simple tax program. You can file as a single taxpayer or married filing jointly and use the program, but you can’t have any dependents.

The Basic edition supports forms 1040 and 8853 as well as Schedules A & B.

What it Includes:

The Basic edition covers your basic 1040 and standardized deductions. It’s for the ‘basic’ taxpayers and includes:

• Audit and inquiry assistance
• Filing your federal return
• Free import of tax documents from any competitor
• Free ‘double check’ from tax professionals at Liberty Tax locations
• Ability to ‘switch to office filing’ if you get stuck

Who Should Use It:

You can only use the Basic edition if you:

• Are single or married with no kids
• Have taxable income less than $100,000
• Have W-2 income
• Have interest income lower than $1,500
• Aren’t itemizing deductions
• You can claim the Earned Income Credit
• Unemployment income reported on 1099-G is okay

If you have kids, investments, or own a house, you’ll need a more robust program to make the most of your eligible deductions. The Deluxe Edition covers all these situations, including everything outside of self-employment.

What it Includes:

The Deluxe edition covers more forms including 1040, 4562, 8839, and Schedules A, B, and C.

It includes everything in the Basic edition, including ensuring you get all deductions and have in-person support should you need it.

Who Should Use It:

If you invest, are a homeowner, or have more deductions than the standard write-offs, you need the Deluxe Edition.

If you make charitable donations, have capital gains, pay mortgage interest, or want to take your Child Tax Credit, the Deluxe version covers what you need.

The Cost

The Deluxe Edition costs $64.95 and $34.95 for state taxes. While it’s a bit more, if you have enough deductions, you can offset the cost.

Pros

• Maximize your deductions given your situation
• Clarification on how taxes work for your situation that’s beyond the ‘standard’
• In-person support at over 3,000 locations

Cons

• It costs extra to file your state taxes
• It can get confusing to address so many situations filing taxes yourself

If you’re self-employed, the Premium Edition covers what you need. This program covers all unique income situations and ensures you get all deductions you’re eligible for, especially as a business owner.

What it Includes:

The Premium edition includes everything from the plans above, but also walks you through unique situations, such as farm income, rental income, unreported tips, beneficiary income, or income over $100,000.

Who Should Use It:

If you’re self-employed, have a high income (over $100,000), or own a business with a partner, you’ll need the Premier version to ensure you cover all your tax liabilities and get the most deductions.

The Cost

The Premier version costs $89.95 plus $34.95 to file your state taxes. Self-employed individuals are in a unique situation, so you’ll be grateful for the support if you’ve decided to do your taxes yourself.

Pros

• Maximize your deductions as a self-employed individual
• Know that you have help at any branch should you get stuck
• Ensure you file the right tax forms as a business owner

Cons

• It costs extra to file your state taxes
• It can get complicated to file taxes as a self-employed individual