What Is Form 8960? Who Can File It?

The purpose of IRS Form 8960 is the calculation of total NII (net investment income). It then determines the amount of contribution that goes to Medicare contribution tax. The form is applicable to taxpayers in the high-income bracket. If you have investment income and your MAGI (Modified Adjusted Gross Income) is above the threshold, you are eligible for the net income investment tax (NIIT). Anyone who earns income from investments in a year may also have to pay net investment income tax. 

The NIIT is a 3.8% tax on the net investment income or the MAGI exceeding the threshold income. As for the threshold, it is as follows:

  • The modified adjusted gross income or MAGI for a joint filing return or by widow must be more than $250,000
  • For married individuals filing separate returns, the MAGI must be more than $125,000
  • If you are the head of a household or a single individual, your MAGI has to be $200,000 or less.


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