Ask an Accountant

Are You a High Earner?

Monday, December 14, 2015
  • If your income is six figures or more, you should anticipate possible liability for the 3.8 percent net investment income (NII) tax calculated on net investment income in excess of your modified adjusted gross income (MAGI). Threshold MAGIs for the NII tax are $250,000 in the case of joint returns or a surviving spouse, $125,000 for a married taxpayer filing a separate return, and $200,000 in any other case. 
  • Keeping income below the thresholds is worth exploring and planning for the NII tax requires a very personalized strategy.