How to Determine if the Net Investment Income Tax (NIIT) Applies to You
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If you have income from investments, you may be subject to the Net Investment Income Tax. You may owe this tax if you receive investment income and your income for the year is more than certain limits. Here are some key tips you should know about this tax:
- 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: