Question

Erin is single. She reported $2,000 of taxable interest on her 2023 tax return. Her modified adjusted gross income is $220,000. Based on the information provided, what is the amount of her Net Investment Income Tax?
$0
$76
$760
$2,000

Answer 1

Net Investment Income Tax = 3.8% of the lesser of (net investment income) and (MAGI − threshold).

For single, threshold = $200,000.
MAGI − threshold = $220,000 − $200,000 = $20,000.
Net investment income = $2,000 (taxable interest).

Lesser amount = $2,000, so NIIT = 0.038 × $2,000 = $76.