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Level 2
March 14, 2026
Question

NIIT Calculation Error

  • March 14, 2026
  • 1 reply
  • 6 views

Turbotax is using AGI minus threshold to calculate NIIT.  It should be using MAGI minus threshold.

    1 reply

    baldietax
    Level 12
    March 14, 2026

    there are different MAGIs... have you checked Form 8960 instructions for Line 13

     

    https://www.irs.gov/pub/irs-pdf/i8960.pdf

     

    If you didn’t exclude any amounts from your gross income

    under section 911 and you don’t own an interest in a CFC

    or PFIC, your MAGI is your AGI as reported on Form 1040

    or 1040-SR.

    rmlesnickAuthor
    Level 2
    March 17, 2026

    Response was helpful.  Thanks.  Didn't realize MAGI is defined differently (IRS vs Social Security).