If you have income from investments, you may be subject to the Net Investment Income Tax. You may owe this tax if you receive investment income and your income for the year is more than certain limits. Here are some key tips you should know about this tax:

  • Net Investment Income Tax. The law requires a tax of 3.8 percent on the lesser of either your net investment income or the amount by which your modified adjusted gross income exceeds a threshold amount based on your filing status.
  • Income threshold amounts. You may owe this tax if your modified adjusted gross income is more than the following amount for your filing status:

  • Filing Status Threshold Amount
    Single or Head of household 200,000
    Married filing jointly $250,000
    Married filing separately $125,000
    Qualifying widow(er) with a child $250,000
  • Net investment income. This amount generally includes income such as:
    • Interest,
    • Dividends,
    • Capital gains,
    • Rental and royalty income, and
    • Non-qualified annuities.

    This list is not all-inclusive. Net investment income normally does not include wages and most self-employment income. It does not include unemployment compensation, Social Security benefits or alimony. It also does not include any gain from the sale of your main home that you exclude from your income.

    Refer to Form 8960, Net Investment Income Tax, to see if this tax applies to you. You can check the form's instructions for the details on how to figure the tax.

  • How to report. If you owe the tax, you must file Form 8960 with your federal tax return. If you had too little tax withheld or did not pay enough estimated taxes, you may have to pay an estimated tax penalty.

For more on this topic, visit IRS.gov/aca.

TaxAct guides you step by step to help determine if you are subject to the Net Investment Income Tax. If you are subject to the tax, TaxAct will automatically calculate the amount and complete your tax forms. File your federal tax return free with TaxAct Free Edition, the most complete free filing solution for simple and complex return.

Additional IRS Resources:

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Upcoming Tax Dates

August 1 — Certain small employers
Deposit any undeposited tax if your tax liability is $2,500 or more for 2017 but less than $2,500 for the second quarter.

August 1 — Federal unemployment tax
Deposit the tax owed through 06-if more than $500.

August 1 — All employers
If you maintain an employee benefit plan, such as a pension, profitsharing, or stock bonus plan, file Form 5500 or 5500EZ for calendar year 2017. If you use a fiscal year as your plan year, file the form by the last day of the seventh month after the plan year ends.

August 10 — Employees who work for tips
If you received $20 or more in tips during July, report them to your employer Details

August 10 — Social security, Medicare, and withheld income tax
File Form 941 for the second quarter of 2018. This due date applies only if you deposited the tax for the quarter timely, properly, and in full.

August 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in July.

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