{"id":115,"date":"2015-01-02T15:24:39","date_gmt":"2015-01-02T20:24:39","guid":{"rendered":"http:\/\/blog.etax.com\/?p=115"},"modified":"2014-12-04T15:26:28","modified_gmt":"2014-12-04T20:26:28","slug":"net-investment-income-tax","status":"publish","type":"post","link":"https:\/\/www.etax.com\/blog\/2015\/01\/02\/net-investment-income-tax\/","title":{"rendered":"What Is the Net Investment Income Tax?"},"content":{"rendered":"<p class=\"p1\">This year, taxpayers may notice a new tax that applies to income from investments. Known as the Net Investment Income Tax, you may be responsible for paying this tax if your regular income is over a certain threshold, and you have investment income. If you think you might be subject to this tax, you\u2019ll want to know a few basic facts about the NIIT.<\/p>\n<p class=\"p2\"><span class=\"s2\">Net Investment Income Tax is applied at a rate of either 3.8% on your investment income or the amount by which you modified adjusted gross income is greater than a specified limit contingent on your filing status, depending on which is less.<\/span><!--more--><\/p>\n<p class=\"p2\"><span class=\"s2\">Net investment income typically includes, but is not limited to:<\/span><\/p>\n<ul>\n<li class=\"p2\"><span class=\"s2\">Interest<\/span><\/li>\n<li class=\"p2\"><span class=\"s2\">Dividends<\/span><\/li>\n<li class=\"p2\"><span class=\"s2\">Rental income<\/span><\/li>\n<li class=\"p2\"><span class=\"s2\"><a href=\"https:\/\/www.etax.com\/blog\/2025\/07\/15\/how-to-pay-0-capital-gains-tax-in-2025-and-make-over-100k-doing-it\/\">Capital gains<\/a><\/span><\/li>\n<li class=\"p2\"><span class=\"s2\">Non-qualified annuities.<\/span><\/li>\n<\/ul>\n<p class=\"p2\"><span class=\"s2\">Often, net investment income doesn\u2019t include wages or salaries, even if they are a result of self-employment. Social Security benefits, unemployment compensation, or alimony payments are also not considered net investment income. Additionally, it doesn\u2019t cover any profit from the sale of your home that\u2019s excluded from your income.<\/span><\/p>\n<p class=\"p2\"><span class=\"s2\">Once you\u2019ve totaled your investment income, you can deduct any credits that qualify. The amount left over is your net investment income. Form 8960 can provide more information on how to determine your MAGI, or you net investment income, and whether you are responsible for paying tax on it. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This year, taxpayers may notice a new tax that applies to income from investments. Known as the Net Investment Income Tax, you may be responsible for paying this tax if your regular income is over a certain threshold, and you have investment income. If you think you might be subject to this tax, you\u2019ll want [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121],"tags":[196,189,186,104,183,185,194,197,195],"class_list":["post-115","post","type-post","status-publish","format-standard","hentry","category-income","tag-capital-gains","tag-dividends","tag-form-8960","tag-interest","tag-investment-income","tag-net-investment-income","tag-niit","tag-non-qualified-annuities","tag-rental-income"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is the Net Investment Income Tax? - eTax.com\u00ae Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.etax.com\/blog\/2015\/01\/02\/net-investment-income-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is the Net Investment Income Tax? - eTax.com\u00ae Blog\" \/>\n<meta property=\"og:description\" content=\"This year, taxpayers may notice a new tax that applies to income from investments. 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