W4 question regarding taxes owed

[mcclabg]

This year and the past year we've owed more in taxes than we ever have in the past.  I have already started adding an extra dollar amount withholding on tops of what I'm putting in based on my W4.  Both my husband and I have our W4's filled out as married & 2.

What else do I need to do to reduce our liability when it comes tax season next year?

[marctu]

Thank you for the question.   The area of your question that jumps off the page is that you both appear to be claiming two dependents.  This would most likely result in you being under withheld for tax year 2024 as well unless the extra withholding offsets the impact of the tax credits in Step 3 of the W-4.   I would suggest strongly that only one of W-4s reflect tax credits in Step 3.

I would also suggest taking the each one of your last pay stubs and taking the year to date withholding and then add the per paycheck withholding and multiplying it over the remaining pay periods. Compare the resulting number to the number on Line 24 of the 2023 1040 to see how it compares.  This should be done after it is verified that only one of you is claiming the tax credits in Step 3 on the W-4.