Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-31-2019, 12:10 AM
Junior Member
 
Join Date: Jan 2019
Posts: 5
NIIT (Net Investment Income tax) Wages

I'm confused as to inclusion of wages in computation of NIIT and would appreciate clarification. I have read statements which explicitly say that Wages are not included for NIIT computation. But if you look at instructions for Form 8960 line 13, AGI and MAGI do include Wages. MAGI is used to compute NIIT. So what is really true?

Secondly, assuming wages are included, why? 3.8% has already been paid by the employer and employee. Why does 3.8% need to be paid again as NIIT?

Obviously, I'm missing something and I'd appreciate help in putting me straight.

Thank you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Net Investment Income Tax (NIIT) and Ordinary dividends TaxTeacher Miscellaneous 4 01-04-2019 11:01 AM
What Every Parent Should Know about Child’s Investment Income Samatg Income 2 01-22-2013 10:26 PM
Tax Lien Investment Income blin1210 Income 0 04-18-2011 11:17 AM
k-1 investment Income mip461 Limited Liability Company 2 04-04-2011 10:41 PM
Tax Rates for a Child's Investment Income Samatg General 0 02-21-2007 07:40 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.