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Forum|Forum|4 months ago
January 28, 2026
1 reply
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Is this a live video call or just an option to chat?

MetLife VIII

AmyC

Level 15

This is a written chat event. You can reply with any questions you have.

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rwhitfieldAuthor

Level 2

We have owed over $10,000 every year for the past 3 years. We both work, own our home, 2 kids and both have our deductions at 0. We are at a loss on how this keeps happening. We have used the IRS tax estimator yet still owe. What else can we do to ensure we don't owe? Is there a better way to estimate our tax burden?

rwhitfieldAuthor

Level 2

Yes, the thread is visible. You have great questions and clever ideas.

The HRA- funded by employer. HSA funded by you would be an effective way to reduce income.
The 401k with pre-tax dollars is a great place to tuck money away and lower your tax bill.

These are not a dollar for dollar swap so you will want to check your liability throughout the year (bonuses, stock options, etc) and verify your withholding is on pace. I recommend checking 4 times a year. That way you can make estimated payments or change withholding. The IRS expects payment the same quarter as the income earned.

@RogerD1 is correct about saving money and making estimated payments or changing your w4 at work where it has the withhold additional $ per pay period.

Use the Tax bracket calculator to find out what percent should be withheld to zero out or at least get below owing $5k and the extra penalties.

Start with

Determine taxable income to date
Determine federal tax withheld / paid and divide it by taxable income.
See if you will owe money and make payment or adjust w4. It can adjusted at work daily if you want.

Example: Marginal tax rate 10% Take tax and divide by income

Ex. $500/ $5000 = 10% on track to zero out.
Ex. $500/10,000 = 5% is less than 10% so you will owe money.
Ex. $500/ $4000 = 12.5% is greater than 10% so refund time.

My husband recently started working contract roles where he is paid through a 1099 (I don't know if I am stating that correctly but it's basically a job where he does work for a company as a contractor and is not technically employed by that company and they don't withhold taxes). We are withholding 30% of that income just to be on the safe side. It has been suggested by multiple people that we start either an LLC or S-Corp for those jobs instead of contracting the work through him directly. When it comes to taxes is there a benefit to opening an LLC vs S-Corp?