[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-303105-105":3,"detail-sidebar-cat-1-en-105":81,"doc-detail-303105-en":126},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","instructions-for-form-8960-net-investment-income-taxindividuals-estates-and-trusts","Instructions for Form 8960 - Net Investment Income Tax—Individuals, Estates, and Trusts","","Instructions for Form 8960 explain how to calculate Net Investment Income Tax (NIIT) for individuals, estates, and trusts. The guidance covers who must file based on modified adjusted gross income (MAGI) thresholds, the purpose of the form, key definitions such as excluded income, net investment income, and controlled foreign corporations. It also outlines recordkeeping considerations and special tax treatment related to passive and trading activities, digital-asset income, and self-employment income exclusions.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/forms/","Forms",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/instructions-for-form-8960-net-investment-income-taxindividuals-estates-and-trusts/303105/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/instructions-for-form-8960-net-investment-income-taxindividuals-estates-and-trusts/303105.png","ImageObject",442,249,{"name":42,"@type":43},"Xiajie","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-04","2026-09-19",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",5,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"Who must attach Form 8960 to their tax return?","Question",{"text":63,"@type":64},"Attach Form 8960 if modified adjusted gross income (MAGI) is greater than the applicable threshold amount.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What is the purpose of Form 8960?",{"text":68,"@type":64},"Form 8960 is used to figure the amount of the Net Investment Income Tax (NIIT).",{"name":70,"@type":61,"acceptedAnswer":71},"What kinds of income are generally included in net investment income (NII)?",{"text":72,"@type":64},"NII generally includes gross income from interest, dividends, annuities, royalties, and rents, plus certain net gains from dispositions, reduced by properly allocable deductions.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},303105,1790224356,{"code":4,"msg":82,"data":83},"success",[84,89,94,99,104,109,113,118,122],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},11,"Presentations",90,"presentations",{"id":90,"doc_module":22,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},12,"Resumes",80,"resumes",{"id":95,"doc_module":22,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},14,"Invoices",70,"invoices",{"id":100,"doc_module":22,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},15,"Posters",60,"posters",{"id":105,"doc_module":22,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},16,"Social Media",50,"social-media",{"id":110,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":111,"slug":112},17,40,"forms",{"id":114,"doc_module":22,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},18,"Letters",30,"letters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":55,"slug":121},21,"Paper Templates","papers-templates",{"id":123,"doc_module":22,"doc_module_name":25,"category_name":124,"show_sort_weight":4,"slug":125},158,"General","general-158",{"code":4,"msg":82,"data":127},{"doc_id":79,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":110,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":135,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":140,"read_time":141},8814010472675,"https://avatar.qwps.com/avatar/WGlhamll","2025  \nInstructions for Form 8960  \nNet Investment Income Tax—Individuals, Estates, and Trusts   \nSection references are to the Internal Revenue Code unless otherwise noted.  \nFuture Developments  \nFor the latest information about developments related to Form 8960 and its instructions, such as legislation enacted after they were published, [go to](go to IRS.gov/)[ ](go to IRS.gov/)[IRS.gov/](go to IRS.gov/)[ ](go to IRS.gov/)[Form8960](Form8960.)[.](Form8960.)  \nGeneral Instructions Reminders  \nDigital assets. Income derived from transactions involving digital assets may be subject to the tax imposed on net investment income (NII) under section 1411(a), which applies in addition to other income taxes imposed under subtitle A of the Code.  \nCharitable contribution deduction for electing small business trusts (ESBTs). Line 18b of Form 8960 was updated to reflect changes outlined in P. L. 115-97, section 13542, that amended the way the S portion of an ESBT accounts for charitable contribution deductions under section 170(b) instead of section 641(c), effective January 1, 2018. See Line 18b Deductions for Distributions of Net Investment Income and Charitable Deductions.  \nSchedule SE (Form 1040) income. Income taken into account in determining self-employment income subject to tax under section 1401(b) is specifically excluded from NIIT under section 1411(c)(6) . This doesn’t include income that is excepted from net earnings from  \nself-employment (NESE) under section 1402(a)(1) through 1402(a)(17) . This income is subject to NIIT. See Special Rule for Self-employed Individuals.  \nTrade or business income subject to net investment income tax (NIIT). Line 4a of Form 8960 includes total income reported on Schedules C, E, and F (Form 1040) that is potentially subject to NIIT.  \nThese instructions are based mostly on Regulations sections 1.1411-1 through 1.1411-10.  \nWho Must File  \nAttach Form 8960 to your return if your modified adjusted gross income (MAGI) is greater than the applicable threshold amount.  \nPurpose of Form  \nUse Form 8960 to figure the amount of your Net Investment Income Tax (NIIT) .  \nDefinitions  \nControlled foreign corporation (CFC). Generally, a CFC is any foreign corporation if more than 50% of its voting power or stock value is owned or considered owned by U.S. shareholders (as defined in section 951(b)) on any day during the tax year. Certain foreign insurance companies are considered CFCs if more than 25% of their voting power or stock value is owned or considered owned by U.S. shareholders (as defined in section 951(b)) on any day during the tax year. See sections 957(a) and (b) . Additionally, certain foreign insurance companies with related person insurance income may be CFCs. See section 953(c) . A specified foreign corporation described in section 965(e)(1)(B) and Regulations section 1.965-1(f)  \n(45)(i)(B) that is not otherwise a CFC is treated as a CFC for purposes of Regulations section 1.1411-10. See Regulations section 1.965-1(d) .  \nExcluded income. “Excluded income” means:  \n• Income excluded from gross income in chapter 1 of the Internal Revenue Code;  \n• Income not included in NII; and  \n• Gross income and net gain specifically excluded by section 1411, related regulations, or other guidance published in the Internal Revenue Bulletin.  \nExamples of excluded items are:  \n• Wages,  \n• Unemployment compensation,  \n• Alaska Permanent Fund Dividends,  \n• Alimony,  \n• Social security benefits,  \n• Tax-exempt interest income,  \n• Income from certain qualified retirement plan distributions, and  \n• Income subject to self-employment taxes. See Special Rule for Self-employed Individuals, later.  \nNet investment income. Generally, NII includes gross income from interest, dividends, annuities, royalties, and rents, unless they’re derived from the ordinary course of a trade or business that isn’t (a) a passive activity, or (b) a trade or business of trading in financial instruments or commodities. In addit","cbCaiqy3Oo6Y1p5Q","https://ap.wps.com/l/cbCaiqy3Oo6Y1p5Q","pdf",377700,25,"English","# Future Developments\n## General Instructions Reminders\n## Who Must File\n## Purpose of Form\n## Definitions\n## Recordkeeping","[{\"question\":\"Who must attach Form 8960 to their tax return?\",\"answer\":\"Attach Form 8960 if modified adjusted gross income (MAGI) is greater than the applicable threshold amount.\"},{\"question\":\"What is the purpose of Form 8960?\",\"answer\":\"Form 8960 is used to figure the amount of the Net Investment Income Tax (NIIT).\"},{\"question\":\"What kinds of income are generally included in net investment income (NII)?\",\"answer\":\"NII generally includes gross income from interest, dividends, annuities, royalties, and rents, plus certain net gains from dispositions, reduced by properly allocable deductions.\"}]","Instructions for Form 8960 - Net Investment Income Tax—Individuals, Estates, and Trusts | PDF",1789799971,9]