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

What Is IRS Form 8960?

This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury. As of today, no separate filing guidelines for the form are provided by the IRS.

FAQ

Q: What is IRS Form 8960?
A: IRS Form 8960 is a tax form used to calculate the Net Investment Income Tax.

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

Q: What is the Net Investment Income Tax?
A: The Net Investment Income Tax is an additional tax on certain investment income. It is used to help fund the Affordable Care Act.

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 compare it to the applicable threshold amount.

Q: What is considered net investment income?
A: Net investment income includes income from interest, dividends, capital gains, rental income, and other passive activities.

Q: What are the threshold amounts for the Net Investment Income Tax?
A: For most individuals, the threshold amount is $200,000 for single filers and $250,000 for married filers. Different thresholds apply to estates and trusts.

Q: When is IRS Form 8960 due?
A: IRS Form 8960 is generally due at the same time as your individual income tax return, usually April 15th.

Q: Are there any exceptions or exemptions for the Net Investment Income Tax?
A: Yes, there are certain exceptions and exemptions that may apply. It's best to consult the instructions for IRS Form 8960 or speak with a tax professional for more information.