Am I correct in thinking that those taxpayers who will be paying the Net Investment Income tax (3.8% to pay to pay for the health care "savings") will be less likely to be hit by the AMT, since the NII tax will be a part of the "regular" income tax which is compared to the AMT tax calculation to determine the amount, if any, of the added tax due to the AMT?
Net Invetment Income tax and the AMT
Nov 09, 2013
3 Replies
Based on form design I'd have to say you're wrong. The amount in question winds up an "other" tax on line 60.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
I believe you are correct. Thanks.
I have seen other sources that confirm Phil's reply. While it can be dangerous to try to make sense of tax laws sometimes, this one does make sense if you consider the 3.8% NII tax in the same category as the 0.9% Medicare surtax on high-wage earners, where 3.8% = 2.9% (regular employer/employee Medicare tax) + 0.9% (surtax). As a type of Medicare tax, it would not be expected to be part of the regular vs. AMT income tax calculation.
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