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[FIRE'd@51]

Managing deductions, delaying/accelerating sales of appreciated equities, working any extra hours a few weeks earlier or later to get the income into the proper year, etc.

I don't see how managing deductions helps. Don't the subsidies depend upon modified AGI which is before deductions?

 

[samclem]

I don't see how managing deductions helps. Don't the subsidies depend upon modified AGI which is before deductions?

Yes. The deductions can't help you qualify for the PPACA subsidies. But if a person is using other methods to get under the 400% line (e.g. working fewer hours, avoiding sale of appreciated stocks, etc), managing the deductions by taking them in alternate "high income" years (when the person might be in a higher tax bracket) would be better.

If someone writes a computer program ("TurboTax Plus!") to integrate this PPACA "optimization" with the normal tax-time hoop dance, they will make a fortune.