Sorry. May be I was not clear. My question is about additional 3.8% tax on net investment income. If I take standard deduction on instead of itemized on Schedule A, am I allowed to take deduction of State Income Tax that I paid on the Net Investment income I had made in 2020, and pay this 3.8% tax for NIIT for the remaining after deducting?
I live in PA, and I pay tax 3.07% on my investments. So, if I am able to deduct the PA Tax I paid from the net investment income, the tax I pay will be very little (like 0.73%).
I am looking for some documentation that prohibits deducting state tax from Net Investment Income, if I am taking Standard $24,800 instead of filing Schedule A with itemized deductions.
Any help is greatly appreciated.
