@dr-nizami68 wrote:
Let me make a correction, the amount is $339 and it appears on Line 12 as "net investment income tax". It's coming from line 17 on form 8960. This is tax owed on profit made in 2024. I thought because I carryover a very large loss from previous years, this amount would zero out and not get added as other tax on line 12. It appears it is a mistake in the system as it should have zero'd out.
"Net Investment Tax" is something different. It was created to help pay for Obamacare and expansion of Medicaid. It's 3.8% of investments over a certain amount, and can even be applied to all your income once you pass a certain threshold--this is why the top US income tax rate is really 40.8% even though the official top bracket is 37%. You owe the NET even if your capital gains are otherwise covered by prior losses.
https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-8960-net-investment-income-t...
