Tax and legal terms

Net Investment Income Tax (NIIT)

The net investment income tax (NIIT) is a 3.8% federal tax on certain net investment income when modified adjusted gross income exceeds a filing-status threshold, including $200,000 for single filers and $250,000 for married couples filing jointly. Taxable investment gains may be included. Gain excluded from gross income under an applicable QSBS exclusion is generally not included in net investment income; any taxable portion needs separate analysis.

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