Based on the information you've provided, you are already taking the available steps to reduce your taxable pay (by maxing out the contribution to your 401k, you lower your taxable income that gets reported in box 1 of the W2 at the end of the year. ) Given that you are already doing what you can to lower your taxable income, the next best step to avoid having an end of the year balance due to the IRS will be to complete a new W4 form to have your employer withhold additional taxes.
You can use our TurboTax W-4 Calculator to zero in on the appropriate entries for the W-4 to help ensure your withholding will cover your tax liability at the end of the year. The calculator will allow you to enter information about your filing status and dependents, as well as your income, and what pre-tax deductions you have withheld from your paychecks. Once you have the results, you can then complete an updated W-4 form to turn in with your payroll department.
Clarissa
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