The National Directory of Certified Public Accountants

Ask A CPA - Affordable Care Act - Individuals

Net Investment Income Tax On

In 2013, the new tax applied to investment income, such as interest and dividends for individuals with income over certain thresholds. There is a 3.8% surtax levied on the lesser of net investment income or the excess of modified adjusted gross income over $250,000 for joint filers and qualified widow's, $200,000 for single filers and $125,000 for married filing separately taxpayers. The Net Investment Income Tax will calculated on new IRS Form 8960 and transfer to Form 1040 line 60.

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