We have a tax due $5000 in 2021

[teller307]

We are married fill jointly and our 2021 income is about $175K. After using turbox tax calculation we are due $5000 of federal tax.

I believe that our income has exceed the limit to purchase a traditional IRA to save money. What are other options here regarding to the tax due? Thank you.

[DaveF1006]

If you have a High Deductible Health Plan at work, you can make a Heath Saving Account contribution by April 18. This IRS publication explains this plan in detail. Both you and your spouse might contact Human Resources to see if you are both eligible. Contribution limits that are deductible are $3600 for a self-only plan or $7200 for the family plan, for a maximum deduction of $7200 for this year.

[teller307]

Hi, we contacted our employer and since we are already offered the Healthcare spending account and MRA… I don’t think we are eligible for the HSA in this case. Please… any other suggestions? Thank you.

[AnnetteB6]

After the end of the tax year, there are only a couple of alternatives that remain to affect your bottom line on your return.  That would be making a deductible contribution to a Traditional IRA or a deductible contribution to a Health Savings Account. 

Since neither of those options is available to you, I can only suggest that you double-check all of your entries to be sure everything has been entered accurately.  Especially check any withholding amounts that were entered. 

If you do not find any errors, take a look at the following TurboTax article for your options with regard to paying your balance due:  How can I pay my federal taxes?

Also, you might consider going through the W-4 section of your return to be sure that you do not need to change the amount of taxes withheld from your paychecks for 2022 or take a look at making estimated payments for 2022 if you expect a similar situation going forward.  TurboTax may have already included estimated vouchers for you.

Here is information about updating your W-4 withholdings using TurboTax:  

How do I update my 2022 withholdings and print a new W-4?

@teller307

[SweetieJean]

While you may have had some other options on or before 12/31/2021, there's not much else you can do now.