JohnW152... I understand what you are saying but maybe you can explain this... A single person has $200,000 in Capital Gains, Ordinary Income and IRA distribution plus 13,400 in taxable SS benefits which gives you a $213,400 AGI. Without any other deductions or credits that gives you a $213,400 MAGI. Less the single person Threshold of $200,000 gives you $13,400 to be included in the NIIT tax calculation at a rate of 3.8% which increases your tax debt by $509.20. So, by taxable SS benefits being included in the MAGI the taxable SS benefits have affectively increased investment income which has increased the NIIT amount to be taxed and the single person would pay another $509.20 in tax because taxable SS benefits are part of the NIIT tax calculation. If the taxable SS benefits were not included in the MAGI then the single person would not have exceeded the $200,000 Threshold which increased their tax debt. Thank you for your time. I look forward to hearing from you!!
