How to stop owing every year

Forum|Forum|26 days ago
May 13, 2026
1 reply
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My husband and I file jointly. He makes about 150k between two jobs - all W-4’s. I make about 70k. Ever since I’ve been working full time adding the 70k, we have owed about $5k at the end of the year. We have 2 children. Thanks for any advice you can offer. Also, if we need to pay estimated taxes, what happens if our first payment is late? Do we still get penalized? Thanks.

AmitaR

Employee Tax & Finance Expert

If almost all of your income is coming from W-2 (as an Employee), you're not required to do Quarterly Estimated Payments (although it is one of the options to fix your issue). What I would do if I were in your situation, I would just increase my withholding using the Form W-4.

With every thing you have described, your husband has two jobs, you have one job, you can just divide the $5,000 that you usually owe every year between the remaining pay periods and then the amount you get divide it between the two of you: however you want to allocate. 50:50, 60:40, or whatever proportion and enter that amount on each of your Form W-4, line 4(c), as extra withholding.

As long as you have paid in 100% of the Prior Year tax liability or 110% if your Adjusted Gross Income is over $150,000 for Married Filing Joint ($75,000 for Married Filing Separately), then you are not subject to Estimated Tax Penalty.

In a situation, where you have other types of income, for example, Self-employment income or large amount of rental income, investment income, etc. etc., you may want to consider doing the Quarterly Estimates, that are due April 15, June 15, September 15, and January 15.

What happens if the payments are late? Depends, on the amount of balance due at the tax time, and how late you were for making these payments, etc.

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