Why net investment income tax threshold is only 250k for MFJ?

Forum|Forum|2 years ago
January 2, 2024
6 replies
0 views

It is 200k for single. All other tax brackets are proportionate, but not the NIIT threshold. I was expecting this to be 400k for joint filers. I have wondered about this for some time. Looking for a logical reasoning here.

TurboTax Home & Biz Windows

Best answer by VolvoGirl

There will probably be program updates to come especially in the investment area. Here are some links.....

What is Form 8959

https://ttlc.intuit.com/community/health-care/help/what-is-form-8959/00/26326

What is Form 8960

https://ttlc.intuit.com/community/forms/help/what-is-form-8960/00/26274

IRS info on Net Investment Income Tax

https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax

IRS Info on the Additional Medicare tax on high earners (for wages)

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax

Bsch4477

Employee

You’re looking for logic in the tax code?

rjs

Employee

Logic and tax law do not go together. Congress decided to make the limits what they are. Their reasons for provisions of the tax law are not always clear.

VolvoGirlAnswer

Employee

There will probably be program updates to come especially in the investment area. Here are some links.....

What is Form 8959

https://ttlc.intuit.com/community/health-care/help/what-is-form-8959/00/26326

What is Form 8960

https://ttlc.intuit.com/community/forms/help/what-is-form-8960/00/26274

IRS info on Net Investment Income Tax

https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax

IRS Info on the Additional Medicare tax on high earners (for wages)

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax

rjs

Employee

@gb1 Future software updates will not change the threshold amounts for the Net Investment Income tax because the thresholds are fixed by law. They do not need to be updated and will not be updated.

Mike9241

The tax laws are what they are. some provisions are unfair. Congress writes the tax laws not the IRS. You can always write your Senators and Reps

gb1Author

If anyone reading this, it might help to file separately. Obviously you would have to split up the investment accounts. Anyways, problem is that the investment income gets added to regular income while determining NIIT, that's another flaw in this tax law. Poorly written tax code.