What Liberty Tax Service Does

Liberty Tax Service is a tax preparation chain that prepares and files federal and state income tax returns for individuals and small business owners. The company operates physical locations in most states, plus an online filing option. You meet with a tax preparer (either in person or online) who gathers your income documents, deductions, and credits, then prepares your return and submits it to the IRS and your state tax agency on your behalf.

Liberty is one of several national tax preparation chains — others include H&R Block and Jackson Hewitt. Unlike tax software you use yourself (like TurboTax or TaxAct), you are paying for a person to do the work rather than doing it yourself with software guidance. The cost varies by the complexity of your return and your location.

Liberty also offers Refund Advance loans, which are short-term loans against your expected tax refund. These loans charge interest and fees, and you repay them from your refund when it arrives. This is a separate financial product from tax preparation itself.

Key Takeaways

  • Liberty Tax Service prepares your return with a tax preparer in a physical office or online, then files it with the IRS and your state.
  • You pay a fee for preparation, which depends on how complex your return is — a straightforward W-2 return costs less than a return with self-employment income or rental property.
  • Liberty offers Refund Advance loans that let you borrow against your expected refund before it arrives, but these loans charge interest and fees.
  • You can file with Liberty in person at a local office, by video call, or by mailing documents — the method depends on which office location you use.
  • Liberty is responsible for preparing your return correctly, but you remain responsible for the accuracy of the information you provide.

How to Prepare Your Return with Liberty

Start by locating a Liberty office near you or checking whether your state offers online preparation. You can find office locations on the Liberty Tax Service website. Call ahead or check their hours — many offices are busiest during tax season (January through April) and may have limited hours outside that window.

Bring all documents the preparer will need: your Social Security number, driver's license or ID, W-2 forms from your employer, 1099 forms if you have self-employment or investment income, mortgage interest statements (Form 1098), property tax records, charitable donation receipts, and any other records of income or deductions you plan to claim. The preparer will ask you questions about your household, dependents, and major life changes during the year.

The preparer will then prepare your return on their computer, showing you the numbers as they enter them. You review the completed return before it is filed. Once you approve it, Liberty submits the return electronically to the IRS and your state tax agency. You receive a copy of your filed return.

What Liberty Charges and How Payment Works

Liberty's preparation fee is not a fixed amount — it depends on the complexity of your return. A basic return with only W-2 income costs less than a return that includes self-employment income, rental property, investment income, or business deductions. Some offices publish their fees on their website or will quote you over the phone before you come in.

You typically pay the preparation fee when your return is completed and before it is filed. Some Liberty offices offer to deduct the fee from your refund — this is called a Refund Deduction — so you do not pay out of pocket. If you choose this option, the fee is subtracted from your refund check when it arrives.

Liberty also charges a filing fee if you file both federal and state returns. The total cost for a straightforward return usually ranges from $100 to $300, but returns with more income sources or deductions cost more. Ask your preparer for the total fee before you authorize the return to be filed.

Refund Advance Loans and How They Work

A Refund Advance is a short-term loan that Liberty offers based on your expected tax refund. You borrow money now, and you repay it from your refund when it arrives. This is not a gift or a benefit — it is a loan with interest and fees.

The loan amount is typically smaller than your expected refund, because Liberty keeps the difference to cover the interest and fees. For example, if Liberty estimates your refund at $2,000, they might offer you a $1,500 loan, and when your refund arrives, they take $1,500 plus fees from it, leaving you with the remainder.

Refund Advances charge interest (the rate varies) and a loan fee. The total cost can be $100 to $300 or more depending on the loan amount. You do not have to take a Refund Advance — it is optional. Many people choose not to because the interest and fees reduce the amount of money they actually receive from their refund.

How Long It Takes to Receive Your Refund

Once Liberty files your return electronically with the IRS, the IRS processes it and issues your refund. The IRS typically issues refunds within 21 days of receiving your return, though some returns take longer if they are selected for review or if there are errors.

If you choose direct deposit (the IRS deposits your refund into your bank account), you usually receive the money faster than if you request a paper check. Liberty will ask you for your bank account information so the IRS can deposit your refund directly.

If you took a Refund Advance loan, the lender receives your refund directly from the IRS, deducts the loan amount plus fees, and sends you the remainder. This means you do not receive your full refund — part of it goes to pay back the loan.

What Happens If There Is an Error on Your Return

If Liberty makes an error in preparing your return — for example, entering a number incorrectly or missing a deduction you told them about — Liberty is responsible for correcting it. Contact the office where you filed and explain the error. They will prepare an amended return (Form 1040-X) and file it with the IRS at no additional charge.

If the IRS finds an error or has questions about your return, they will contact you directly by mail. You are responsible for responding to the IRS, though you can ask Liberty for help understanding the notice. Liberty may charge a fee to represent you in an IRS correspondence or audit.

You remain responsible for the accuracy of the information you provide to Liberty. If you give them incorrect information — for example, overstating deductions or not reporting income — that is your responsibility, not Liberty's.

Alternatives to Liberty Tax Service

If you have a straightforward return (only W-2 income, standard deduction, no dependents), free tax software or the IRS Free File program may be a better choice because there is no cost. The IRS Free File program is available to people with income below a certain threshold and includes options from multiple tax software companies.

If you prefer to work with a person but want a lower cost, a local tax preparer or CPA may charge less than a national chain, especially for straightforward returns. You can also prepare your own return using tax software and have a preparer review it before you file.

If you have a complex return (self-employment, rental property, significant investments), a CPA or enrolled agent may be worth the cost because they can identify deductions and strategies a general tax preparer might miss.

Frequently Asked Questions

Can I file with Liberty if I have self-employment income?

Yes. Liberty preparers are trained to handle self-employment income and can help you report it on Schedule C. You will need to bring records of your income and business expenses. The preparation fee will be higher than for a straightforward W-2 return because self-employment returns are more complex.

What if I need to file an amended return after Liberty files my original return?

Contact the Liberty office where you filed. They can prepare Form 1040-X (Amended U.S. Individual Income Tax Return) and file it with the IRS. There is usually no charge if the amendment is due to an error Liberty made, but there may be a fee if you are amending for other reasons.

Do I have to take a Refund Advance loan?

No. Refund Advances are optional. You can file your return with Liberty and wait for your refund from the IRS without borrowing against it. Many people skip the loan because the interest and fees reduce the amount they receive.

What if I cannot find a Liberty office near me?

Liberty offers online preparation in most states. You can upload your documents and work with a preparer by video call or email. Check the Liberty Tax Service website to see whether online filing is available in your state.

Is Liberty Tax Service affiliated with the IRS?

No. Liberty is a private company that prepares and files tax returns on your behalf. The IRS does not endorse or operate Liberty. Liberty is responsible for preparing your return correctly and filing it with the IRS, but the IRS makes the final decision about your refund or tax owed.