8960

Net Investment Income Tax—Individuals, Estates, and Trusts

Agency
IRS
Revision
2025
Fillable fields
38
Pages
1
Official source
IRS form page
Checked
October 21, 2026
Fill 8960 online
Page 1 of form 8960

Form 8960: Net Investment Income Tax for Individuals, Estates, and Trusts (2025)

Form 8960 is used to figure the Net Investment Income Tax (NIIT). The About page says taxpayers use it to figure the amount of their NIIT, and the form title names individuals, estates and trusts. This page covers the 2025 form.

The instructions say to attach Form 8960 to your return if your modified adjusted gross income (MAGI) is greater than the applicable threshold amount. For individuals the threshold is based on filing status: $250,000 for married filing jointly or qualifying surviving spouse, $125,000 for married filing separately, and $200,000 for single or head of household. Estates and trusts use the dollar amount at which the highest tax bracket for estates and trusts begins.

The form adds up investment income in Part I, subtracts allocable expenses in Part II, and figures the tax at 3.8% in Part III. You can fill out Form 8960 free in your browser on this page and download the result without an account.

What's on Form 8960

Elections

Checkboxes at the top of Part I for the section 6013(g) election, the section 6013(h) election and the Regulations section 1.1411-10(g) election.

Part I, lines 1 to 3

Taxable interest, ordinary dividends and annuities.

Part I, lines 4a to 8

Rental real estate, royalties, partnerships, S corporations, trusts and trades or businesses, gains and losses from property, adjustments for certain CFCs and PFICs, other modifications, and total investment income on line 8.

Part II: expenses

Lines 9a to 11 for investment interest expenses, state, local and foreign income tax, miscellaneous investment expenses and additional modifications.

Part III: individuals

Line 12 is net investment income. Lines 13 to 17 compare MAGI to the filing status threshold and figure the tax at 3.8%.

Part III: estates and trusts

Lines 18a to 21 for undistributed net investment income, adjusted gross income, the highest tax bracket amount and the tax at 3.8%.

How to fill out Form 8960

  1. 1

    Header and elections

    Enter the name shown on your tax return and your SSN or EIN. Check an election box only if it applies. The instructions say a section 1.1411-10(g) election also needs a statement attached to the return.

  2. 2

    Lines 1 to 3

    Enter taxable interest from Form 1040 or 1040-SR line 2b (Form 1041, line 1), ordinary dividends from line 3b (Form 1041, line 2a), and gross income from annuities other than the qualified plans and IRAs the instructions list.

  3. 3

    Lines 4a to 8

    Enter line 4a from Schedule 1 (Form 1040), lines 3, 5 and 6 (Form 1041, lines 3, 5 and 6), adjust on line 4b, report gains and losses on lines 5a to 5d, enter any adjustments on lines 6 and 7, and combine them on line 8.

  4. 4

    Lines 9a to 11

    Enter investment interest expense (Schedule A (Form 1040), line 9, or Form 4952, line 8 for estates and trusts), state, local and foreign taxes allocable to net investment income, other investment expenses and modifications, then total them.

  5. 5

    Individuals, lines 12 to 17

    Subtract line 11 from line 8. Enter MAGI, which the instructions say is generally your AGI from Form 1040 or 1040-SR, and the threshold. Multiply the smaller of line 12 or line 15 by 3.8%. The instructions say line 17 goes on Schedule 2 (Form 1040), line 12.

  6. 6

    Estates and trusts, lines 18a to 21

    Reduce net investment income by distributions and charitable deductions, enter AGI and the highest bracket amount from the Form 1041 instructions, and multiply the smaller amount by 3.8%. Line 21 goes on Form 1041, Schedule G, line 5 or Form 1041-QFT, line 15.

Why fill Form 8960 on indox

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Where it goes and what to know

Attach to your return

The form says to attach it to your tax return. It carries Attachment Sequence No. 72.

Excluded income

The instructions give examples of excluded items: wages, unemployment compensation, Alaska Permanent Fund Dividends, alimony, social security benefits, tax-exempt interest, income from certain qualified retirement plan distributions and income subject to self-employment taxes.

Digital assets

The instructions say income from transactions involving digital assets may be subject to the tax on net investment income.

Form 1040-NR filers

The instructions say Form 1040-NR filers include line 17 on their U.S. residency statement and see the Instructions for Form 1040-NR for the amount to report.

Recordkeeping

The instructions say to keep all records and worksheets for the items on Form 8960, and to keep records for the entire life of an investment to show how basis was figured.

Related forms

Who needs to fill out Form 8960?

  • Individuals over the threshold

    U.S. citizens and residents with net investment income and MAGI over the threshold for their filing status. The instructions list $250,000, $125,000 or $200,000 depending on filing status.

  • Estates and trusts

    The instructions say the NIIT applies to domestic estates and trusts with undistributed net investment income and adjusted gross income above the amount where the highest tax bracket begins.

  • Spouses of nonresident aliens

    The instructions say the NIIT does not apply to nonresident alien individuals. A U.S. citizen or resident married to one is treated as married filing separately for NIIT unless a section 6013(g) or 6013(h) election is applied.

  • Bankruptcy estates and special trusts

    The instructions say a bankruptcy estate of an individual is treated as an individual using the married filing separately threshold, and they give special rules for qualified funeral trusts and electing small business trusts.

  • Trusts not subject to the NIIT

    The instructions list trusts the NIIT does not apply to, including grantor trusts, charitable remainder trusts exempt under section 664, and trusts exempt from income tax.

The instructions say to attach Form 8960 to your return if your MAGI is greater than the applicable threshold amount. Individuals, estates and trusts each have their own lines in Part III.

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Questions about Form 8960

What is the net investment income tax rate?

The form figures it at 3.8% (0.038) on line 17 for individuals and line 21 for estates and trusts.

What are the thresholds for individuals?

The instructions list $250,000 for married filing jointly or qualifying surviving spouse, $125,000 for married filing separately, and $200,000 for single or head of household.

What threshold do estates and trusts use?

The instructions say it is the dollar amount at which the highest tax bracket for estates and trusts begins for the year, as shown in the instructions for Form 1041, Schedule G, line 1a, and Form 1041-QFT, line 12.

Are wages included in net investment income?

No. The instructions list wages, social security benefits and income subject to self-employment taxes among the examples of excluded items.

Does the NIIT apply to nonresident aliens?

The instructions say the NIIT does not apply to nonresident alien individuals.

Where does the tax from Form 8960 go?

The instructions say Form 1040 or 1040-SR filers include line 17 on Schedule 2 (Form 1040), line 12. Form 1041 filers include line 21 on Schedule G, line 5, and Form 1041-QFT filers on line 15.