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


 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. 




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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. 

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