How Does The Net Investment Income Tax Affect Taxpayers ?

The Lesser of the Net Investment Income Or the Amount of your Gross Adjusted Income Exceeds the thresholds set by your Filing Status, that is used to determine the Excess Income. 3.8% of the Excess Income is the Net Investment Tax.

A)          Filing Status                                      Threshold Amount
        1.     Single of HOH                                          $200,000
        2.     MFJ                                                           $250,000
        3.     Qualifying Widower with Child             $250,000
        4.     MFS                                                           $125,000

B)   Net Investment Income Includes - Interest, Dividends, Capital Gains,  Rental & Royalty Income, Non-Qualified Annuities

C)   Excludes Income From- Wages, Self Employment, Unemployed Compensation,  Social Security Benefits, and Alimony.

D)   Fill out Form 8960 to see if the Net Investment Income Tax is applicable.

For Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 

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