Net Investment Income Tax

[bmggomez]

Is all interest shown on 1099 INT taxed separately? This amount is included in my AGI, why does my tax explanation show I owe "other taxes" in the amount of $598 due to Net Investment Income tax. I am not getting any investment income. 

[Bsch4477]

Do you have dividends or capital gains?

[bmggomez]

No, I do not. All of my interest was from regular savings accounts. One account was a "high yield" savings account. I that taxed at a different rate? 

[Bsch4477]

Look for form 8960. That will tell you where it’s coming from. 

[bmggomez]

Thank you for your help. Found my answer on IRS.gov https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax

NIIT 3.8% tax if earnings over $250k threshold. That was the exact amount. Good to know! -Thanks for your input.

[mhmconsultant2004]

Net Investment Income Tax (NIIT) applies only if your modified AGI exceeds certain thresholds ($200k single, $250k MFJ). Regular interest from 1099-INT is included in investment income. If you’re below the threshold or have no other investment income, NIIT likely doesn’t apply—review for possible error.