net investment income tax on

Net Investment Income Tax

Net Investment Income Tax The Net Investment Income Tax (NIIT) is a 3.8% surtax that applies to investment income for certain taxpayers in the United States. It’s essentially an additional tax on top of your regular income tax. Here’s a breakdown of the key points: Who it applies to: Individuals, estates, and trusts. However, there are income thresholds you need to exceed before the NIIT applies. What it taxes: Net investment income, which includes things like: Capital gains (both short-term and long-term)…