Form 8960


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What is an 8960 Form?

The tax form 8960 is an application for calculating taxes on your income from interest, dividends, annuities, and so on. Depending on the size of your gross income (MAGI), you might need to complete this document with your return for the past year.

Form 8960

What do I need the 8960 Form for?

  • What is IRS Form 8960 used for? With its help, you calculate Net Investment Income Tax if you have investments whose amount exceeds a certain threshold.
  • This additional tax is only required to be paid if your MAGI is above the limit under certain conditions. For example, this figure should be above $125,000 if you are married and self-filing.
  • See IRS Form 8960 instructions for a complete list of categories.

How to Fill Out the 8960 Form?

Step 1: The first part is about your investment income. List all the types of income and sum them up to get the total income.

Step 2: In the second part, you need to calculate the investment costs. These include investment interest costs or local taxes.

Step 3: In the last section, you need to calculate the net investment tax. Subtract the results of the second part from the results of the first. Depending on your category (individual or trust/estate), you need to do a few extra steps according to the instructions for IRS Form 8960.

Step 4: If the result is below zero, don’t submit the form to the IRS. If it is higher and MAGI exceeds the required threshold, then the result of these calculations should be indicated in the personal tax return (Form 1040).

Filling Form 8960

Organizations that work with 8960 Form

  • IRS
Fillable online Form 8960
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