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Level 2
Mar 14, 2026 5:03 PM UTC
Question

NIIT Calculation Error

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

    2 replies

    baldietax
    Level 12
    Mar 14, 2026 6:42 PM UTC

    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
    Mar 17, 2026 6:27 PM UTC

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