Use Form 8960 to calculate the Net Investment Income Tax (NIIT) when your Modified Adjusted Gross Income (MAGI) exceeds the applicable threshold amount listed below.
For U.S. citizens and residents, individuals must pay a 3.8% NIIT on the lesser of: (a) Their MAGI exceeding the threshold, or (b) Their net investment income.
The applicable threshold amount depends on your filing status and is as follows:
Married Filing Jointly or Qualifying Widower with Dependent Child: $250,000
Married Filing Separately: $125,000
Single or Head of Household: $200,000
To access Form 8960, follow these steps:
From the left-side menu, click Federal Section > Other Taxes, then select Net Investment Income Tax (Individuals, Estates, and Trusts).
Enter any income adjustments and additional expenses related to investment income in the designated fields.
