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Net Investment Income Tax

Overview

For Individuals the Surtax is 3.8% of the lesser of:

  • Taxpayer’s net investment income, or
  • Excess MAGI over the threshold amount.

Threshold Amounts for Individuals (not inflation adjusted):

  • $125,000 for MFS
  • $200,000 for S and HH
  • $250,000 for MFJ and SS

For an estate or trust, the surtax is 3.8% of the lesser of:

  • Undistributed net investment income or
  • The excess of AGI over the dollar amount at which the highest income tax bracket applicable to an estate or trust begins.

Related IRC and IRS Publications and Forms

  • Code Section 469 – Passive Activities
  • Code Section 1411 – Net Investment Income Tax
  • Final Regulations §1.1411-1 – §1.1411-10
  • Proposed Regulations §1.1411-7
  • Publication 550 – Investment Income and Expense
  • Form 4952 – Investment Interest Expense Deduction
  • Form 8960
  • Form 1040 Schedule A

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