sidhu688, since this is your first post, I'll pull the face punch on $900/m on car payments, just promise you will drive the wheels off those vehicles...
You are caught in the W2 wage trap, and have done about all you can do to shield that income from taxes. Outside of ensuring you are getting the full value of potential Schedule A deductions, you don't have much more to optimize.
Since any marginal increase in income is being taxes around 50% (you don't mention your state), this is the point where you need to consider developing income or investment returns from other non-W2 wage sources that have favorable tax treatment.
My favorite tax treatment has been the capital gains exclusion on the sale of a primary residence. ($250,000 single / $500,000 married after a minimum of 2 yrs ownership) While this can be speculative depending on market conditions, I have done well with several 'slow flips' with sweat equity improvements. I particularly like this exclusion because the
net gains are not restricted, and forever tax free. Rental real estate works for many. Done properly, the depreciation write off on the rental property can effectively reduce your taxable W2 income. The challenge is capital gains upon the sale of a property must be rolled over to a new rental property to avoid taxation. Additionally, there is the dreaded "depreciation recapture tax" which can claw back those tax savings AT YOUR TOP TAX BRACKET. The crew at
Bigger Pockets have this strategy down to a solid science:
https://www.biggerpockets.com/If you invest in mutual funds with after tax dollars, look for tax efficient funds which minimize trading. If you follow the MMM / FIRE model of low cost index mutual funds, you should get this benefit without having to explicitly choosing 'tax efficient' funds.
Always check out the Mad Fientist.
http://www.madfientist.com/ Brandon often focuses on tax avoidance strategies. Unfortunately, most of these only apply on the retirement side of the timeline when your income is lower and the tax law is favorable.
One final thought: Can either of you convert to a 1099 contractor / consultant? While you will have to pay self-employment tax, you can contribute up to 25% of the Schedule C business income (aka "business" contribution) to a Solo 401K in addition to the standard $18,000 "employee" contribution. Additionally, work related expenses are deducted BEFORE FICA/Social Security and taxes, if allowed.