For Immediate Release
January 31, 2013
|CONTACT: Martha O’Gorman
Chief Marketing Officer
(800) 790-3863 ext. 8022
American Workers Can Change Their W-4 Forms to Offset Tax Hikes
Tax Assists Taxpayers on Stretching Their Income
Beach, VA (January 31, 2013) – The vast majority of American workers
are feeling the sting of the expiration of the Social Security Payroll Tax
Holiday, that returned the Social Security Tax withholding rate to 6.2 percent.
Liberty Tax Service has some advice for people trying to get the most out of
By increasing the number of exemptions claimed on the W-4
form, taxpayers can essentially increase their paycheck amount by having less
money withheld. The catch is to make sure that too much isn’t withheld that
would cause a tax liability at the end of the year. Changes can be made to the
W-4 form at any time during the year. However, many employees fill out and then
forget about their W-4 form. There is no “open enrollment” for the W-4 form,
allowing workers to monitor their paycheck and adjust their withholdings
depending on the needs and changes of their financial situation at any time
during the year.
When taxpayers visit a Liberty Tax location to have their
taxes done this year, a tax professional can help them determine what changes on
their W-4 might be practical to increase their take-home pay. Liberty Tax has
professionals available to help taxpayers evaluate their individual situation. Taxpayers
can find a local Liberty Tax location by calling 866-871-1040.
The following chart breaks down the impact of the 2 percent
2013 Social Security Impact
Income Annual Payout Monthly Breakdown Bi-weekly Breakdown
$10,000 $200 $16.67 $7.69
$20,000 $400 $33.33 $15.38
$30,000 $600 $50.00 $23.08
$50,000 $1,000 $83.33 $38.46
$65,000 $1,300 $108.33 $50.00
$75,000 $1,500 $125.00 $57.69
$90,000 $1,800 $150.00 $69.23
$100,000 $2,000 $166.67 $76.92
$110,000 $2,200 $183.33 $84.62
$113,700+ $2,274 $189.50 $87.46*
payroll tax is capped at the 2013 Social Security wage base limit of $113,700.
Any income above $113,700 is maxed out at $2,274 payout.
Founded in 1997 by CEO John T. Hewitt,
Liberty Tax Service is the fastest-growing tax preparation franchise ever.
Liberty Tax Service has prepared over 10 million individual income tax returns
to date. Liberty Tax Service and its nationwide network of over 30,000 tax
preparers are ready to offer their assistance at any time.
to the International Franchise Association’s Franchise Business Economic Outlook, the number of franchise units
in the United States declined from 2009 until 2012. Currently there are approximately 27,000 fewer
total franchise establishments operating in the United States than there were
in 2008. (774,016 in 2008 compared to 746,828 in 2012). In spite of this downward trend, Liberty Tax
Service increased its number of locations from 2,695 in 2008 to 4,183 in
Liberty Tax Service stands behinds community enrichment
efforts by sponsoring various non-profit organizations and urging their
employees and franchisees to give back to their communities. To extend that
community support, Liberty also offers an online tax
service, eSmart Tax, which enables some to do their own taxes wherever there’s
a computer. eSmart Tax is backed by the tax professionals at Liberty Tax
Service and its nationwide network of over 30,000 tax preparers,
ready to offer their assistance at any time.
For a more in-depth look at Liberty Tax Service, visit http://libertytax.com or the Give Me Liberty! Magazine. Follow Liberty Tax on Facebook at http://facebook.com/LibertyTax and on Twitter at http://twitter.com/libertytax or check the blog at http://libertytax.com/taxlounge or contact Liberty
Tax directly at 1-877-at-Liberty.