Thanks for the Info MaryK1101. Just to clarify... The Threshold amount is subtracted from the MAGI amount (which includes taxable SS benefits according to you) which gives you the NIIT amount to be taxed at 3.8%. So how can you say the NIIT does not include taxable SS benefits? Taxable SS benefits are being included in MAGI amount which increases the MAGI amount which is used to determine the NIIT taxable amount. IRS says that SS benefits are not to be included in the NIIT but they are included when the taxable SS benefits are included in the MAGI amount aren't they? If taxable SS benefits aren't to be included in the NIIT amount then the taxable SS benefits should be excluded from the MAGI amount because if the taxable SS benefits are included then the MAGI amount increases and that then increases the Net Investment Income taxable amount after subtracting the Threshold amount? You could say the taxable SS benefits are being taxed twice... once as ordinary income then again by increasing MAGI which increases NIIT which increases tax debt? Thank-you for your time... I welcome your input!!
