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Married, Successful, and Overpaying? Tax Planning Strategies for High-Income Dual-Income Households
Here’s something the IRS doesn’t advertise:
Success gets expensive fast, especially when there are two high earners under one roof.
You both worked hard. You both climbed your career ladders. And now you’re living in that post-promotion, post-bonus, equity-vesting glow.
Until tax season slaps you with a surprise.
And suddenly, you’re asking the same question we hear every year:
“How are we making this much… and still writing a five-figure check to the IRS?”
The Dual-Income Tax Trap: What You Don’t Know Is Hurting You
When both spouses earn strong W-2 income, it’s easy to assume your payroll team is “taking care of the taxes.”
But here’s the catch: they’re each only looking at their slice of the pie, not the full household picture.
Which means:
You get hit with phaseouts (like for the Child Tax Credit or education deductions)
You cross the $250K+ threshold for the Medicare surtax (3.8%)
You quietly lose deductions you used to qualify for
You may underpay throughout the year and rack up penalties
And if stock options or bonuses come into play… forget it, you’re flying blind
According to Tax Foundation, households earning between $250K and $500K often experience the worst marginal tax rates due to lost deductions and surtaxes.
Smart Couples Don’t Just File Taxes—They Plan for Them
The good news? There are very real, very legal ways to minimize your tax burden and keep more of what you earn.
Here are just a few strategies high-income couples are using right now:
1. Max Out (and Stack) Retirement Contributions
401(k) + HSA + Backdoor Roth = tax-sheltered growth + current-year deductions.
If you’re not coordinating contributions across both employers, you might be leaving five figures on the table.
2. Use a Dependent Care FSA (Even If You Make “Too Much”)
Many high earners skip this because they assume they don’t qualify.
Spoiler: You do. And you can set aside up to $5,000 tax-free for child care before you even hit your top bracket.
3. Consider a Spousal Income Shift (If One of You Has Equity or 1099 Income)
In some cases, shifting income or restructuring how compensation is received—especially for side gigs or equity—can create planning opportunities.
Yes, this is legal. No, your payroll team won’t suggest it.
4. Check Your Withholding (Before Q4 Sneaks Up)
This is the single most common mistake we fix for high-income couples.
If your combined income is over $300K and neither of you adjusted your W-4s, the IRS will come collecting—plus penalties.
Tax Software Isn’t Built for Dual-W-2 Households. We Are.
Tax prep is about reporting the past.
Tax planning is about shaping the future.
If you’re earning multiple six figures as a household and still just “filing in April,” you’re almost certainly overpaying.
We work with high-income couples every day—from tech employees and lawyers to medical professionals and real estate agents—to help them:
Uncover missed deductions
Navigate dual compensation plans
Eliminate underpayment penalties
And feel confident that they’re not funding more than their share of Washington’s budget
Want a Second Set of Eyes on Your Tax Picture?
If this sounds like you—or sounds like your 2024 tax bill—let’s talk.
We can walk through your recent return, discuss what changed this year, and help you identify planning opportunities before it’s too late.
Contact our office to schedule a time that works for you.
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Rose Tax & Financial
Cedar Crest, New Mexico 87008
Sat: 10:00am to 2:00pm
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