Instructions for IRS Form 8960 Net Investment Income Tax - Individuals, Estates, and Trusts

IRS Form 8960 Net Investment Income Tax " Individuals, Estates, and Trusts

This document contains official instructions for IRS Form 8960 , Net Investment Income Tax - Individuals, Estates, and Trusts - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8960 is available for download through this link.

FAQ

Q: What is IRS Form 8960?
A: IRS Form 8960 is used to calculate and report the Net Investment Income Tax for individuals, estates, and trusts.

Q: Who is required to file IRS Form 8960?
A: Individuals, estates, and trusts that have Net Investment Income and meet certain income thresholds are required to file Form 8960.

Q: What is Net Investment Income?
A: Net Investment Income includes income from sources such as interest, dividends, capital gains, rental income, and royalties.

Q: How do I calculate the Net Investment Income Tax?
A: To calculate the Net Investment Income Tax, you need to determine your Net Investment Income and apply the appropriate tax rate.

Q: What are the income thresholds for filing IRS Form 8960?
A: For individuals, the threshold is $200,000 ($250,000 for married couples filing jointly). For estates and trusts, the threshold is $12,500.

Q: What is the tax rate for Net Investment Income?
A: The tax rate for Net Investment Income is 3.8%.

Q: When is IRS Form 8960 due?
A: IRS Form 8960 is generally due on April 15th of the year following the tax year.

Q: Can I e-file IRS Form 8960?
A: Yes, you can e-file IRS Form 8960 using tax software or through a tax professional.

Q: What happens if I don't file IRS Form 8960?
A: If you are required to file IRS Form 8960 and fail to do so, you may be subject to penalties and interest on any unpaid tax.