Liberty Tax’s Online Withholding Calculator Can Help Consumers Avoid Surprises at Tax Time

 

Press Information
For Immediate Release
December 21, 2009

 

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

Liberty Tax’s Online Withholding Calculator Can Help Consumers Avoid Surprises at Tax Time

Liberty Tax’s Online Withholding Calculator Can Help Consumers Avoid Surprises at Tax Time

(Virginia Beach, VA)  A big refund at tax time may mean that the IRS is using that money interest free all year.  Owing at tax time is never pleasant, but may be minimized.  A withholding adjustment can be the key to resolving either of these tax dilemmas.  The online Liberty Tax Withholding Calculator can help consumers figure out if it’s time to adjust withholding, and how to accomplish it.  Adjusting the amount of withholding by refiguring allowances claimed can easily alter the amount of taxes a consumer elects to have withheld from their paychecks throughout the year. 

“The tricky business of matching the amount of taxes withheld to the amount of taxes owed can also be affected by many life and financial changes, such as purchasing a home, getting married or divorced, having a child, and recent tax law changes like the ‘Making Work Pay’ credit,” said John Hewitt, CEO of Liberty Tax Service.  “Our withholding calculator delivers a recommendation based on the individual’s projected tax for the year, current income tax withheld, and number of jobs held.”

The number of allowances claimed on a Form W-4 is the determining factor for the amount of taxes withheld from an employee’s paycheck.  More is less when it comes to figuring allowances.  The more allowances claimed, the less income will be withheld as taxes.  Taxpayers who have more than one job and families with two working spouses may be having too little withheld, and benefit from claiming fewer allowances.  Those who itemize may find that reducing their withholding is to their advantage.

Taxpayers who received a large refund, but may qualify for more tax credits or deductions in the coming year can consider increasing allowances or decreasing the additional amount withheld. In households where both spouses work, the best strategy is generally for the higher paid spouse to claim the allowances, and the other spouse to claim zero allowances. The entire process of adjusting withholding can usually be completed within 30 days of submitting a revised Form W-4 to an employer. 

About Liberty Tax Service

Liberty Tax Service is the fastest growing retail tax preparation company in the industry’s history.  Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 7,000,000 individual income tax returns.  With 41 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service (NYSE:JTX). 

Liberty Tax Service provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax.  Each office offers customers audit assistance, a money back guarantee, and free tax return checking.  The Liberty Tax Service franchise opportunity is #9 on the fastest growing franchises list of the 2010 Entrepreneur “Franchise 500.”

    

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Liberty Tax Service CEO John Hewitt is available for interview. Contact Martha O’Gorman, LTSChief Marketing Officer at (800) 790-3863 ext. 8022 or martha.ogorman@libtax.com.