Pay less taxes/break even?

[JosephineMartell]

Hi,

My husband and I always end up owing around $4-5K each year, but when I've done the IRS withholding calculator it tells me Im withholding too much tax. We live in NYS and both get W2's and file as married jointly. Last year, we earned about $208K gross (taxable income $183K). He has two jobs (~55K and ~$20K, and I earn~$155K. We have three dependents, 18, 13, 13. We own our house and have some investments, but that's about it. No other income. Any suggestions on how to more accurately estimate our withholdings/taxes and break even?

Thank you!

[Loretta P]

Intuit TurboTax has several free calculators that will allow you to try different changes to see how they will impact your return for Tax Year 2025.  We are early enough in the year that you could make changes that will help you owe less in tax so you can break even when filing your tax return for 2025.  

You can use the tax calculator to adjust or make changes for example if you increase retirement savings how would that impact the taxes owed.  Once you review the changes and are happy, you can use the W-4 calculator to make adjustments in your withholding to have more or less taken out of your paycheck.

Tax Calculator 2024

W-4 Calculator 2024

I would also suggest keeping an eye on the potential changes currently being reviewed in Congress.  If the bill passes, it will increase the SALT (State & Local Tax) cap.  As you indicated you live in NY this may have a positive impact for you by increasing itemized deductions.