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Had their net investment income been $300,000, then Kelly and John would pay 3.8 percent on the $250,000 by which their MAGI exceeds the income thresholds. Here, Kelly and John would pay $9,500 in ...
Another savings perk of selling your home is the Net Investment Income Tax (NIIT) exclusion. According to the IRS, the NIIT applies at a rate of 3.8% to certain net investment income of ...
Net investment income (NII) is defined as the profit gained from investments after deducting certain related expenses. This includes various forms of income such as interest, dividends, rental ...
Higher income taxpayers, as well as taxpayers with sources of income that are defined as net investment income in the statute, pay an additional 3.8% tax to offset the costs of the Affordable Care Act. [9] This tax first took effect in 2013.
Taxpayers earning income above certain thresholds ($200,000 for singles and heads of household, $250,000 for married couples filing jointly and qualifying widowers with dependent children, and $125,000 for married couples filing separately) pay an additional 3.8% tax, known as the Affordable Care Act tax provisions#net investment income tax, on ...
The reduced rate also applies to dividends from corporations organized in the United States or a country with which the United States has an income tax treaty. This 15% rate was increased to 20% in 2012. Beginning in 2013, capital gains above certain thresholds is included in net investment income subject to an additional 3.8% tax. [57]
These are the 2023 income thresholds for net investment income tax: Single-filers or head of household: $200,000. Qualifying widow(er) with a child: $250,000. Married couples filing jointly: $250,000.
While long-term capital gain rates can be 0%, 15% or 20%, keep in mind that any gain that exceeds the exclusion limit may also be subject to the net investment income tax (NIIT), a 3.8% tax that ...