Alain Mire files a single tax return and has adjusted gross income of $304,000. His net investment income is $53,000. What is the additional tax that Alain will pay on his net investment income for the year?
A) Zero
B) $1,938
C) $2,014
D) $3,952
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Alain Mire is subject to the Net Investment Income Tax (NIIT) of 3.8% on his net investment income because his adjusted gross income is above the threshold of $200,000 for single filers. The additional tax he will pay on his net investment income is $53,000 x 3.8% = $2,014. The correct answer is thus C.

Alain Mire Files a Single Tax Return and Has Adjusted