rjs
Level 15
Level 15

Get your taxes done using TurboTax

Interest income is investment income. Your bank CDs are investments. You have to pay Net Investment Income Tax if you file as single or head of household, your Modified Adjusted Gross Income (MAGI) is over $200,000, and you have any investment income at all. Unless you have certain kinds of foreign income, your MAGI for NIIT will be the same as your Adjusted Gross Income (AGI).