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🎧 Listen Now on SpotifyNIIT Planning Guide
Tax CalculatorAre You Subject to the 3.8% NIIT?
The Net Investment Income Tax (NIIT) applies to high earners. Use this calculator to see if you're affected and learn how to legally reduce its impact.
NIIT Calculator
Enter your filing status and income to estimate your potential Net Investment Income Tax.
Estimated Net Investment Income Tax:
$0
Based on your entries, you are below the income threshold.
Key Planning Strategies
You can legally reduce your exposure to the NIIT. Here are the most effective strategies:
Focus on Excluded Income
Income from wages, self-employment, and qualified retirement plan distributions (401k, IRA) are exempt from NIIT. Prioritizing these can lower your tax.
Maximize Deductions
Reduce your Net Investment Income by deducting allocable expenses like investment interest, advisory fees, and state taxes paid on investment income.
Prove Material Participation
If you actively run a business (including some real estate activities), its income is generally NOT subject to NIIT. Document your hours to prove you materially participate.
Manage Your AGI
If your income is near the threshold, consider strategies to lower your AGI, such as maximizing contributions to traditional 401(k)s or HSAs.
