How do I exclude NUA from net investment income tax?

To exclude you NUA from Net Investments, you will switch to "Forms Mode" (this is only available for TurboTax Desktop) and make the adjustments on Form 8960.

 

To do this:  

1. Click on the "Forms" icon in the upper right hand corner,
2. Click on the "Open Form" icon above the list of forms/schedules/worksheets 
3. Type in "8960" in the box and 
4. Click on the "Form 8960 Worksheet" item.
5. The adjustment would go on Line 5b of Form 8960. Net Gain or Loss From Disposition of Property That Isn’t Subject to Net Investment Income Tax Gain attributable to net unrealized appreciation (NUA) in employer securities held by a qualified plan

 

Keep in mind: Any gain attributable to NUA that you realize on a disposition of employer securities held by a qualified plan is a distribution (within the meaning of section 1411(c)(5))  and isn’t included in net investment income.

 

 However, any gain realized on a disposition of employer securities attributable to appreciation in the value of your employer securities after the distribution from a qualified plan isn’t a distribution within the meaning of section 1411(c)(5) and is included in net investment income.

 

 

To switch to Forms Mode:

 

 

To Open Your Form:

 

 

Line 5b of Form 8960:

 

 

Click here for "Net Unrealized Appreciation (NUA) Tax Treatment"

 

Click here for Form 8960.

After I purchase the desktop version in order to access the form, and finish my taxes, will I be able to submit my taxes electronically? Or will I have to print everything out and mail in to IRS and my State tax forms too? 

You will be able to file your tax return electronically using the desktop version of TurboTax.

 

@dlipps1