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billhirt
New Member

is capital gains tax the same asinvestment income tax

form 8960
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2 Replies
MaryK4
Expert Alumni

is capital gains tax the same asinvestment income tax

A capital gain is included as an Investment for the Net Investment Income Tax.  Generally, net investment income includes gross income from interest, dividends, annuities, royalties, and rents.

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is capital gains tax the same asinvestment income tax

No.  I think you are asking about the Net Investment Income Tax on schedule 2 line 12.  That is in addition to the tax on your income.

 

For the tax on 1040 line 16, There are like 7 different ways to calculate the tax.
It depends what kind of income you have. Even though the full amount shows up in the total income on the 1040 line 7, if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from Schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all the worksheets to see it.

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