NIIT
Business & Finance abbreviation · Tax
| Stands for | Net investment income tax |
|---|---|
| Categories | Business & Finance |
NIIT stands for Net investment income tax, a tax abbreviation.
Additional 3.8% federal tax on interest, dividends, capital gains, rental income and passive business income for individuals with modified AGI above $200,000 (single) or $250,000 (married filing jointly). It applies to the smaller of net investment income or the income above the threshold.
Example: Selling the rental property pushed our income over the line, so we owe NIIT on the gain.
Usage notes
Enacted with the Affordable Care Act and in effect since 2013. The thresholds are not indexed for inflation, so the tax reaches more households each year. Wages, retirement plan distributions and home-sale gains excluded under section 121 are not subject to it. Calculated on Form 8960.
Related abbreviations
More tax abbreviations
- MAGI – Modified adjusted gross income
- MFJ – Married filing jointly
- MFS – Married filing separately
- MTD – Making Tax Digital
- NI – National Insurance
- NIC – National Insurance contributions
- NOL – Net operating loss
- OASDI – Old-Age, Survivors, and Disability Insurance
- OIC – Offer in compromise
- OSS – One-Stop Shop
- P11D – Return of expenses and benefits (Form P11D)
- P45 – Details of employee leaving work (Form P45)