American Workers Can Change Their W-4 Forms to Offset Tax Hikes

 

Press Information
For Immediate Release
January 31, 2013 
   

 

 
CONTACT: Martha O’Gorman
Chief Marketing Officer
(800) 790-3863 ext. 8022
martha@libtax.com
 

 

 American Workers Can Change Their W-4 Forms to Offset Tax Hikes
Liberty Tax Assists Taxpayers on Stretching Their Income
 

 

Virginia 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 their paycheck. 

 

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 increase: 

 

2013 Social Security Impact 

Pre-taxed Annual 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* 

*The 2% 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. 

 

 

 

About Liberty Tax Service                   

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. 

According 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 2012.   

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.  

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