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 the Net Investment Income Tax (NIIT) for individuals, estates, and trusts.

Q: Who needs to file IRS Form 8960?
A: Individuals, estates, and trusts with certain levels of investment income need to file IRS Form 8960.

Q: What is the Net Investment Income Tax?
A: The Net Investment Income Tax is a tax on certain investment income, including interest, dividends, capital gains, rental income, and passive income.

Q: How do I calculate the Net Investment Income Tax?
A: To calculate the Net Investment Income Tax, you need to report your investment income and deductions on IRS Form 8960.

Q: What are some examples of investment income?
A: Examples of investment income include interest, dividends, capital gains, rental income, and royalties.

Q: Are there any exemptions or deductions available for the Net Investment Income Tax?
A: Yes, there are certain exemptions and deductions available to reduce the amount of Net Investment Income Tax owed.

Q: When is the deadline to file IRS Form 8960?
A: The deadline to file IRS Form 8960 is typically the same as the deadline to file your federal income tax return, which is April 15th.

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 the unpaid Net Investment Income Tax.

Q: Can I e-file IRS Form 8960?
A: Yes, you can e-file IRS Form 8960 if you are using tax software that supports this form.