8960-2025

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The document is Form 8960, used by individuals, estates, and trusts to report and calculate the Net Investment Income Tax (NIIT) as mandated by the Internal Revenue Service (IRS). It includes sections for reporting various types of investment income, deductions, and tax computations related to net investment income.

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Click ‘Get Form’ to open the 8960 in the editor.
Begin by entering your name(s) as shown on your tax return at the top of the form.
In Part I, fill out the relevant sections for taxable interest, ordinary dividends, and annuities. Follow the instructions provided for each line to ensure accuracy.
For rental real estate and other income sources, complete lines 4a through 4c. Make sure to include any adjustments as necessary.
Continue with lines 5a through 7, detailing net gains or losses and any modifications to investment income.
In Part II, list your investment expenses on lines 9a through 10. Sum these amounts to determine total deductions.
Finally, calculate your net investment income tax in Part III by following the instructions for individuals or estates and trusts as applicable.

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Versions	Form popularity	Fillable & printable
2023	4.8 Satisfied (58 Votes)
2022	4.3 Satisfied (60 Votes)
2021	4.8 Satisfied (249 Votes)
2020	4.4 Satisfied (101 Votes)
2019	4.3 Satisfied (166 Votes)
2018	4.3 Satisfied (223 Votes)
2017	4.4 Satisfied (232 Votes)
2015	4.1 Satisfied (73 Votes)
2013	4.3 Satisfied (66 Votes)

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What triggers net investment income tax?

The law requires you to pay the NIIT if your modified adjusted gross income (MAGI) is above the threshold for your filing status and you earn net investment income. However, if you have no investment income, you are not liable for the NIIT, even if your MAGI exceeds the threshold amount.

Who pays the 3.8% net investment tax?

The Net Investment Income Tax is imposed by section 1411 of the Internal Revenue Code. The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.

How do you avoid net investment income tax?

How do you avoid the net investment income tax? You can avoid the net investment income tax by keeping your MAGI below $200,000 for single filers, $250,000 for those married filing jointly or $125,000 for those married filing separately. But that doesnt mean you have to make less money.

What is the purpose of Form 8960?

Form 8960 is the IRS form used to calculate your total net investment income (NII) and determine how much of it may be subject to the 3.8% Medicare contribution tax.

What income is not subject to net investment income tax?

Net investment income generally does not include wages, unemployment compensation, Social Security Benefits, alimony, and most self-employment income. Additionally, net investment income does not include any gain on the sale of a personal residence that is excluded from gross income for regular income tax purposes.

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What is the income limit for 8960?

The applicable threshold amount is based on your filing status. Married Filing Jointly or Qualifying Widow(er) is $250,000. Married Filing Separately is $125,000. Single or Head of Household is $200,000.

At what income does the 3.8 surtax kick in?

The tax applies to taxpayers with modified adjusted gross income (MAGI) in excess of $200,000 if single or head of household and $250,000 if married filing jointly ($125,000 for married filing separately). The income thresholds are not adjusted annually for inflation.

8960-2025

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What triggers net investment income tax?

Who pays the 3.8% net investment tax?

How do you avoid net investment income tax?

What is the purpose of Form 8960?

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What is the income limit for 8960?

At what income does the 3.8 surtax kick in?

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