What is 3.8 percent net investment income tax

Any tax-exempt interest income, such as from a municipal bond. The NIIT Thresholds. Put into effect in 2013, the net investment income tax is set at 3.8 percent. 26 Sep 2016 The Net Investment Income Tax is an extra 3.8 percent tax passed in 2010 to help finance the Affordable Care Act. 29 Oct 2019 One of the new taxes created under Obamacare is a 3.8 percent tax on passive sources of income of certain individuals. It's called the “net  2018 MFJ Capital Gains Rates. *Plus 3.8 percent net investment income tax on unearned income when modified adjusted gross income exceeds $250,000  4 Feb 2014 tax liabilities with a credit for foreign taxes paid; however, individuals who are subject to the new 3.8 percent net investment income tax (NIIT) 

Dec 17, 2019 · Investing has the potential to earn you great returns – but where money’s being made, you can surely find Uncle Sam nearby. Accordingly, the net investment income tax (NIIT) will take a 3.8% bite out of a portion of your investment earnings.There are, however, a number of restrictions on what the NIIT does and doesn’t apply to.

5 Oct 2018 For instance, there's the 3.8 percent net investment income tax, which is applicable if you have net investment income and a modified adjusted  9 Jan 2020 A summary of the new 3.8% Net Investment Income Tax (NIIT) that applies to net investment income of individuals, estates, and trusts, starting  27 Feb 2015 The 3.8 percent tax on the net investment income of high-wage earners became effective for the tax year beginning Jan. 1, 2013. 26 Jan 2015 What Is the Net Investment Income Tax? income, and the “Net Invest- ment Income Tax” (NIIT) is a 3.8 percent tax on net investment income. 11 Dec 2013 Recently released final regulations aim to clarify the Code Sec. 1411 3.8 percent Net Investment Income (NII) tax and Code Sec. 3101(b)(2) 0.9  9 Jan 2012 Net investment income. Net investment income, for purposes of the new 3.8 percent Medicare tax, includes interest, dividends, annuities, 

6 Dec 2012 As a result of the Affordable Care Act, a new 3.8 percent net investment income tax under Code Sec. 1411 goes into effect on January 1, 2013.

How to avoid the surtax on investment income - MarketWatch May 02, 2015 · The net investment income tax, or NIIT, is actually a 3.8% Medicare surtax on investment income. It first took effect in 2013. So after filing your 2014 return, you’ve experienced the joys of The 3.8 Percent Net Investment Income Tax Final ...