The 3.8% Net Investment Income Tax

October 12, 2013 / Investment, Taxes

Originating as a component of 2010 health care legislation and first effective in 2013, the 3.8% NIIT is assessed on the lesser of net investment income or modified adjusted gross income (MAGI) above specific thresholds. The MAGI thresholds are $200,000 for single individuals, $250,000 or joint filers and surviving spouses, and $125,000 for married taxpayers filing separate returns.