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April 13, 2021
Question

Estimated Tax - Investment Gains and Losses compared to Net Investment Income

  • April 13, 2021
  • 1 reply
  • 0 views

I am working on our estimated tax payments for 2021. I cannot tell what the difference is between the "Investment Gains and Losses" page and the "Net Investment Income" page.

 

Also, the instructions for the "Net Investment Income" page says to include this income in the "Enter 2021 Other Income Section" as well. Isn't this doubling my expected income, thus increasing our estimated taxes??

    1 reply

    AmyC
    Employee
    April 13, 2021

    No. Net Investment Income Tax is an additional tax filed on form 8960 for higher income taxpayers. 

    The applicable threshold amount is based on your filing status.

    • Married Filing Jointly or Qualifying Widow(er) is $250,000.

    • Married Filing Separately is $125,000.

    • Single or Head of Household is $200,000

    See Instructions for Form 8960 

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