- Net Investment Income Tax. The law requires a tax of 3.8 percent on the lesser of either your net investment income or the amount by which your modified adjusted gross income exceeds a threshold amount based on your filing status.
- Income threshold amounts. You may owe this tax if your modified adjusted gross income is more than the following amount for your filing status:
Filing Status
|
Threshold Amount
|
Single or Head of household
|
$200,000
|
Married filing jointly
|
$250,000
|
Married filing separately
|
$125,000
|
Qualifying widow(er) with a child
|
$250,000
|
- Net investment income. This amount generally includes income such as:
- Interest,
- Dividends,
- Capital gains,
- Rental and royalty income, and
- Non-qualified annuities.
This list is not all-inclusive. Net investment income normally does not include wages and most self-employment income. It does not include unemployment compensation, Social Security benefits or alimony. It also does not include any gain from the sale of your main home that you exclude from your income.
Refer to Form 8960, Net Investment Income Tax, to see if this tax applies to you. You can check the form’s instructions for the details on how to figure the tax.
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
Additional IRS Resources:
- Questions and Answers on the Net Investment Income Tax --> https://www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs
From IRS
