High-income taxpayers face a regular income tax rate of 35% or 37%. And they may also have to pay an additional 3.8% net investment income tax (NIIT). The NIIT applies only if modified adjusted gross income (MAGI) exceeds: $250,000 for married taxpayers filing jointly and surviving spouses; $125,000 for married taxpayers filing separately; and $200,000 for unmarried taxpayers and heads of household. The amount subject to the tax is the lesser of your net investment income or the amount by which your MAGI exceeds the threshold ($250,000, $200,000, or $125,000) that applies to you. Fortunately, there are some ways you may be able to reduce the impact of the NIIT. Contact us for strategies.
