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. It includes sections for reporting various types of investment income, deductions related to investment expenses, and the computation of the tax based on modified adjusted gross income.

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Click ‘Get Form’ to open the 8960 in the editor.
Begin by entering your personal information, including your name and social security number or EIN at the top of the form.
In Part I, report your investment income. Fill in lines for taxable interest, ordinary dividends, and annuities as applicable. 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 combine any adjustments as instructed.
Proceed to Part II where you will list investment expenses allocable to investment income. Enter amounts for investment interest expenses and state taxes on lines 9a through 9c.
Finally, calculate your net investment income tax in Part III by following the instructions carefully for individuals or estates and trusts based on your situation.

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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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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is the main purpose of a tax return?

A tax return is a form filed with a tax authority that reports a taxpayers income, expenses, and other pertinent information. It allows a taxpayer to calculate their tax liability so they may either schedule a payment or request a refund.

What is the threshold for form 8960?

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

What records do I need for form 8960?

Before you begin filling out Form 8960, compile all necessary documents: Financial Statements: Collect your income statements, investment account summaries, and brokerage reports that show dividends, interest, capital gains, and other investment income.

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.

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.

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 is the purpose of the net income statement?

Serving as a critical metric, net income provides investors with a clearer picture of a companys profitability, making it a key performance indicator on a companys income statement.

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.