If your MAGI is above the threshold amounts mentioned above, you may need to prepare Form 8960 to see what your net investment income is. If it turns out that your net investment income is zero or less, you don’t need to file the form with your taxes. If your net investment income is $1 or more, Form 8960 helps you calculate the NIIT you owe by multiplying the amount by which your MAGI exceeds the applicable threshold or your net investment income—whichever is the smaller figure—by 3.8 percent. You then enter your NIIT liability on the appropriate line of your tax form, and file Form 8960 with your return.
Remember, when you use TurboTax to prepare and file your taxes, you don’t need to know a thing about tax forms, or do any of these calculations on your own. We’ll ask you questions in plain English, handle all the calculations, and put all of your answers on the appropriate tax forms.