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 (NIIT) for individuals, estates, and trusts.

Q: Who needs to file IRS Form 8960?
A: Individuals, estates, and trusts that have net investment income and meet certain income thresholds may need to file Form 8960.

Q: What is the Net Investment Income Tax (NIIT)?
A: The Net Investment Income Tax (NIIT) is a 3.8% tax on certain types of investment income for higher-income individuals, estates, and trusts.

Q: What types of income are subject to the Net Investment Income Tax?
A: Income from sources such as interest, dividends, capital gains, rental income, and passive business activities may be subject to the Net Investment Income Tax.

Q: How do I calculate the Net Investment Income Tax?
A: To calculate the Net Investment Income Tax, you'll need to determine your net investment income and compare it to the applicable income thresholds. Form 8960 provides the necessary calculations.

Q: What are the income thresholds for the Net Investment Income Tax?
A: For individuals, the threshold is $200,000 for single filers and $250,000 for married couples filing jointly. Estates and trusts have different thresholds.

Q: When is the deadline to file IRS Form 8960?
A: The deadline to file IRS Form 8960 generally coincides with the individual income tax return deadline, which is April 15th.

Q: Do I need to attach IRS Form 8960 to my tax return?
A: Yes, if you are required to file Form 8960, you will need to attach it to your individual or estate/trust tax return.