Question on Net Investment Income tax

Apr 24, 2019 1 Replies

Form 8960 Net Investment Income tax



Does it make any difference if my income is federal income tax free income (Tax free Bonds, Money market funds etc) for Net Investment Income tax purposes?



Example: Assuming that I am over the income threshold (over 250k: married) and if my investment income is Federal tax free interest ( a money market or bond fund tax free account), is the income still subject to federal Net Investment Income tax per form 8960?


Tax-free interest is not subject to the NIIT. Tax free interest is also not included in Modified AGI.

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required