Net Investment Income Tax Articles

NIIT for High-Earning Freelancers: When It Applies and How to Calculate It

Start with the core rule: **NIIT is not automatically applied to all high freelance income.** It generally applies only when two things are true at the same time: you have net investment income and your **MAGI** is above the threshold for your filing status. This first pass should give you a likely yes-or-no answer, a rough exposure estimate, and a clearer sense of whether **Form 8960** belongs with your **Form 1040** filing.