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April 2, 2025
Question

form 8960...line 1...Is savings account interest supposed to be a part of this? This form seems to be about net investment income.

  • April 2, 2025
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    1 reply

    LindaS5247
    April 2, 2025

    Yes, savings account interest is included.

     

    Form 8960 is the IRS form used to calculate your total net investment income (NII) (and determine how much of it may be subject to the 3.8% Medicare contribution tax).

     

    Net investment income includes: Capital gains (short- and long-term) Dividends (qualified and nonqualified) Taxable interest (interest income from sources like CDs, savings accounts, and bonds) and Rental and royalty income.


     

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