the 3.8 percent net investment tax is imposed on the lesser of: Net investment income of $125,000; or The excess of (i) AGI of $400,000 over (ii) the applicable threshold amount of $250,000 ...

The NIIT tax rate is 3.8%. It is applied to either your net investment income or the amount by which your modified adjusted gross income (MAGI) exceeds the threshold for your status, whichever is ...

Getting the right tax advice and tips is vital in the complex tax world we live in. The Kiplinger Tax Letter helps you stay right on the money with the latest news and forecasts, with insight from ...

is a 3.8 percent tax on net investment income for individuals exceeding certain income thresholds. Only individuals with modified adjusted gross income (MAGI) above $200,000 (single) or $250,000 ...

Even if you earn significant investment income, you can reduce your tax liabilities by taking steps that reduce your reported adjusted gross income (AGI), your net investment income, or both.

Trusts and estates can also be hit with the surtax if their 2023 AGI exceeds $14,450 and they have undistributed net investment income. Unlike many of the federal income tax breaks and income ...

Modified adjusted gross income, or MAGI, is a crucial tax term to know if you want to qualify for valuable tax benefits.

On the other hand, to determine liability for the net investment income tax, you would only add in the foreign adjustments. As with AGI, if you use tax software, your MAGI for each tax subject ...

If your AGI is relatively high, you may be more likely to trigger the AMT, resulting in a higher overall tax liability. Net investment income tax (NIIT): The NIIT applies to certain types of ...

Rebecca Baldridge, CFA, is an investment professional and financial writer with over 20 years' experience in the financial services industry. In addition to a decade in banking and brokerage in ...