This is yet another reason not to strive to make too much with W-2. For me, it seems like the best way to get the most after tax money is to work at a relaxing job with great benefits that pays well but stay below these magical cap $, then make the rest of your $ in 1099.
The competitive part of me wants to get that title and pay bump in my W-2 job. But the # crunching part of me periodically say that, it’s better to work hard doing 1099 or RE investment stuff than work hard to get that W-2 promotion. Learn to ride the gravy train. First, there’s the $150k income limit for applying passive loss in RE to active income (unless you’re a RE professional). Now, there’s this $115k income limit for DCA. I’m glad I don’t make enough to hit these caps. When all of my kids are in school and my wife go back to work full time, I’m definitely going to push her to try and get a 1099 job or open her own biz.
