How to File Net Investment Income Tax
Recognize investment income.. Determine the specific type of gains that are included.. Distinguish income that is not included.
Steps
Recognize investment income.
Recognize investment income.
Determine the specific type of gains that are included.
Determine the specific type of gains that are included.
Distinguish income that is not included.
Distinguish income that is not included.
Check for allowable deductions that will reduce your gross investment income.
Check for allowable deductions that will reduce your gross investment income.
Calculate your modified adjusted gross income (MAGI).
Calculate your modified adjusted gross income (MAGI).
Determine if your MAGI is over the allowable threshold.
Determine if your MAGI is over the allowable threshold.
Decide if you are an individual not subject to the tax.
Decide if you are an individual not subject to the tax.
Establish whether an estate or trust is subject to the tax.
Establish whether an estate or trust is subject to the tax.
Visit the IRS website.
Visit the IRS website.
Use Form 8960 to compute the NIIT.
Use Form 8960 to compute the NIIT.
Compute the NIIT as an individual.
Compute the NIIT as an individual.
Compute the NIIT as a trust or estate.
Compute the NIIT as a trust or estate.
Report your tax liability on Form 1040 or Form 1041.
Report your tax liability on Form 1040 or Form 1041.
File the appropriate forms and pay the tax.
File the appropriate forms and pay the tax.
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