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Form 8960: Net Investment Income Tax—Individuals, Estates, and Trusts
IRS Form 8960 is used to calculate the Net Investment Income Tax (NIIT) for individuals, estates, and trusts whose modified adjusted gross income exceeds the applicable threshold. Attach the form to the tax return.
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IRS Form 8960 - Net Investment Income Tax—Individuals, Estates, and Trusts
IRS Form 8960 is used to calculate the Net Investment Income Tax (NIIT) for individuals, estates, and trusts whose modified adjusted gross income exceeds the applicable threshold. Attach the form to the tax return.
Risk Radar
Scan points- 1Failing to attach Form 8960 when MAGI exceeds the threshold triggers a penalty.
- 2Attaching Form 8960 to the return when MAGI exceeds the threshold is omitted.
- 3Omitting the required election checkbox for a joint return with a nonresident spouse (Section 6013(g) or 6013(h)).
- 4Failing to attach a statement for a 1.1411-10(g) election when applicable.
- 5Reporting incorrect taxable interest on Line 1, leading to miscalculated total investment income.
Plain English
Form 8960 tells the IRS how much net investment income tax you owe. It adds up interest, dividends, capital gains, and other investment earnings, then applies the tax if your income is high enough. You file it with your regular return.
Submission Date
- Filing date: 2026-02-06 08:10:36
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when your modified adjusted gross income (MAGI) is greater than the applicable threshold amount to figure the Net Investment Income Tax.
- Do not use it when your MAGI is not greater than the applicable threshold amount.
- Check Form 1040‑NR instead when you were a nonresident on the last day of the tax year.
Form selector
Use this form or another form?
Resident individual filing a standard return
Primary individual income tax return where NIIT is reported as an attachment
✓ Confirm Form 1040 is attached before adding Form 8960
Nonresident alien filing U.S. return for part‑year residency
Requires a statement of income for the U.S. resident portion instead of Form 8960
✓ Verify nonresident status and use Form 1040‑NR
Senior individual filing using simplified return
Simplified form for seniors; NIIT still attached via Form 8960
✓ Ensure Form 1040‑SR includes attachment field for Form 8960
Deadline or filing window
Not stated in the official source.
Checklist
What you need before filling it out
Taxable interest (line 1)
Form 1099‑INT · Form 1099‑INT statements
Ordinary dividends (line 2)
Form 1099‑DIV · Form 1099‑DIV statements
Annuities (line 3)
Form 1099‑R · Form 1099‑R statements
Section 6013(g) election
Joint return election statement · Tax return election documentation
Regulations section 1.1411-10(g) election
Election statement for CFC or QEF ownership · Attached election statement
Before you submit
- 1Verify MAGI exceeds the applicable threshold before attaching Form 8960.
- 2Enter taxable interest on line 1 accurately.
- 3Enter ordinary dividends on line 2 accurately.
- 4Enter annuity amounts on line 3, ensuring code “D” is used for NIIT‑subject amounts.
- 5Complete line 4 with rental, royalty, partnership, S corporation, trust, or business income as instructed.
- 6Indicate any Section 6013(g) election on the appropriate line if filing jointly with a nonresident spouse.
- 7Indicate any Section 6013(h) election on the appropriate line if applicable.
- 8Attach the required statement for the first year you are subject to NIIT.
- 9Sign the tax return that includes Form 8960.
- 10Keep a copy of the completed Form 8960 for your records.
How to file this form
- 1Determine if your modified adjusted gross income exceeds the threshold.
- 2Gather all investment income documents such as 1099‑INT, 1099‑DIV, and 1099‑R.
- 3Complete Part I of Form 8960 by entering amounts on lines 1‑4 and any election lines.
- 4Attach Form 8960 to your Form 1040, Form 1040‑NR, or Form 1040‑SR return.
- 5File the combined return with the IRS and retain a copy for your records.
Known limitations
- 1Charitable trusts and qualified retirement plan trusts are exempt from the Net Investment Income Tax (NIIT).
- 2Charitable remainder trusts are exempt from the Net Investment Income Tax (NIIT).
- 3Trusts that are exempt from income taxes imposed by subtitle A of the Internal Revenue Code are not subject to the NIIT.
- 4If modified adjusted gross income (MAGI) is not greater than the applicable threshold amount, Form 8960 is not required.
Field map
Compact field-by-field guide
Entity Info
1 items
Name and taxpayer ID of the entity claiming the credit.
Credit Info
1 items
Type of credit or incentive being claimed.
Calculation
2 items
The base amount used to calculate the credit.
Calculated credit amount after applying formulas and limitations.
Certification
1 items
Detailed breakdown supporting the credit calculation.
Signatures
1 items
Sign and date the form.
Almost done reviewing the fields?
Fillable formOpen in Editor->The form is the 20 25 edition; the instructions direct users to www.irs.gov/Form8960 for the latest information and note that line 18b was updated to reflect recent changes.
What changed or needs a fresh check
- Edition date — confirm the revision reads 20 25
- OMB number — confirm it is 1545-2227
- Fee — Not stated in the official source
- Mailing address — Not stated in the official source
- Signature — Not stated in the official source
Quick Facts
Downloads
After you file
- 1Retain a signed copy of Form 8960 with the tax return for at least three years.
- 2Store an electronic PDF of the filed Form 8960 in a secure location.
- 3Expect an IRS notice confirming the calculated Net Investment Income Tax amount.
- 4If an error is discovered, file Form 1040‑X (amended return) with a corrected Form 8960 attached.
- 5Verify that the form shows the revision date 20/25 before filing.
Sources
- SRCInstructions p.1 — attach Form 8960 if MAGI exceeds the applicable threshold amount.
- SRCInstructions p.3 — trusts exempt from income taxes imposed by subtitle A are not subject to NIIT.
- SRCInstructions p.3 — charitable trusts and qualified retirement plan trusts exempt from tax under section 501 are not subject to NIIT.
- SRCInstructions p.3 — charitable remainder trusts exempt from tax under section 664 are not subject to NIIT.
- SRCInstructions p.2 — nonresident on last day of tax year files Form 1040‑NR and attaches a statement.
- SRCInstructions p.2 — joint return election with nonresident spouse under sections 6013(g) or 6013(h) applies to NIIT.
- SRCInstructions p.8 — line 4b adjusts for nonpassive rental income from a trade or business, including items from Schedule K‑1 (Form 1065) and Schedule K‑1 (Form 1120‑S).
- SRCInstructions p.10 — capital loss carryover from Schedule D (Form 1040) is used in line calculations.
- SRCNot stated in the official source — verify on the agency site
Common confusion points
Do I need to file Form 8960 if my MAGI is below the threshold?
The filing requirement depends on MAGI exceeding the threshold.
→ Confirm MAGI is above the threshold before attaching the form.
Are digital asset transactions automatically included in NIIT?
Instructions mention digital assets may be subject, but do not detail automatic inclusion.
→ Review digital asset income on the worksheet to ensure proper reporting.
Can a nonresident spouse be included on a joint return for NIIT?
Joint return election with a nonresident spouse is allowed under sections 6013(g) or (h).
→ Verify the joint election is made on the return.
Which rental income must be reported on line 4b?
Line 4b adjusts for nonpassive rental income derived from a trade or business.
→ Check Schedule K‑1 (Form 1065) or Schedule K‑1 (Form 1120‑S) for qualifying nonpassive items.
Do charitable remainder trusts have to file Form 8960?
Source lists charitable remainder trusts as exempt from NIIT.
→ Confirm the trust qualifies as a charitable remainder trust.
Is Form 1040‑NR required for nonresident filers?
Instructions state nonresidents file Form 1040‑NR with a statement showing U.S. resident income.
→ Attach the required statement to Form 1040‑NR.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 1040‑X – Amended return to correct NIIT errors.
Questions about IRS Form 8960
What is IRS Form 8960 used for?
Form 8960 tells the IRS how much net investment income tax you owe. It adds up interest, dividends, capital gains, and other investment earnings, then applies the tax if your income is high enough. You file it with your regular return.
Who must file IRS Form 8960?
Individuals, estates, and trusts must file IRS Form 8960 when their modified adjusted gross income is above the applicable threshold.
What information does IRS Form 8960 require?
The form gathers total investment income in Part I, lists deductible investment expenses and other modifications in Part II, and computes the net investment income tax in Part III.
How do I complete IRS Form 8960?
First, complete Part I by entering taxable interest, dividends, capital gains, and other investment income on the indicated lines. Next, fill Part II with any investment interest expenses, state and foreign taxes, and other miscellaneous expenses, then sum them on line 9d and add any additional modifications on line 10. Then calculate net investment income in Part III by subtracting the total deductions (line 11) from total investment income (line 8) and determine the tax liability. Finally, attach the completed Form 8960 to your Form 1040, 1040‑SR, 1041, or other applicable return before filing.
Do I need to file Form 8960 if my MAGI is below the threshold?
The filing requirement depends on MAGI exceeding the threshold. Confirm MAGI is above the threshold before attaching the form.
Are digital asset transactions automatically included in NIIT?
Instructions mention digital assets may be subject, but do not detail automatic inclusion. Review digital asset income on the worksheet to ensure proper reporting.
Can a nonresident spouse be included on a joint return for NIIT?
Joint return election with a nonresident spouse is allowed under sections 6013(g) or (h). Verify the joint election is made on the return.
Which rental income must be reported on line 4b?
Line 4b adjusts for nonpassive rental income derived from a trade or business. Check Schedule K‑1 (Form 1065) or Schedule K‑1 (Form 1120‑S) for qualifying nonpassive items.
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