I agree with what you have listed, but i think I need to clarify. I agree that I need to lower my tax liability, which i am doing with high 401K deductions, and the additional tax withdraws I've added via my W4 & G4. Unfortunately my wife job doesn't offer 401k deduction, which I understand I can make outside of her job. That aside and even removing the additional self employment money from the equation. The issue is with my wife's W4 & G4, and the small amount of tax taken from her check.
I don't understand, besides a potential error from her companys payroll dept. why only 2% Fed. tax would only be taken for the year if she has submitted a W4 form with zero dependents/allowances listed. The reason for submitting the zero dependents/allowances, was to increase the amt of taxes taken out of her check to help compensate for a high tax liability. That's the problem. Would the IRS not allow a higher tax withdrawal from her check, because we file jointly and I am already having the highest amt taken from my check possibly?
