Here is how the Net income Tax is Determined on a 8960 Form.
- First it totals all your investment income and places an amount on Line 12 of the form.
- Next it takes your Modified adjusted Gross Income for the year and subtracts $200,000 and reports this amount in line 15.
- Now it compares line 12 with line 15 and will report the smaller amount in line 16.
- Next it multiplies that amount by 3.8% and that is your net investment tax you will need to.
[Edited 04/04/24|6:25 am PST]
@selfreporter
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