Retirement tax questions

@8960niit you are misreading it.

 

LIne 11 is being pulled over to determine if you are above $200,000 (or $250,000 if filing joint).  The tax itself is 3.8% of the income over $200,000 (or $250,000) OR the investment income, which ever is less

 

Let's say your AGI is $225,000, and you are filing Single.

Let's further say your investment income is $40,000,

 

then the 3.8% is applied to 

the lesser of

$25,000 (the part that exceeds $200,000)

or $40,000 

 

so 3.8% times $25,000 would be the tax,