Ep 49: What Is English For "Net Investment Income Tax (NIIT)?"

What's NIIT?

We discuss NIIT (Net Investment Income Tax), explaining its implications for individuals with investment income and also how it applies in cross-border situations.

We cover the statutory thresholds for the tax, what constitutes net investment income, and the reporting requirements.

We also touch on some fascinating recent court cases that have impacted the application of the NIIT for expats and the potential for foreign tax credits.

Takeaways

• The Net Investment Income Tax (NIT) is a 3.8% tax on certain investment income.
• There are specific thresholds based on the filing status: $250,000 for married filing jointly, $125,000 for single, and $200,000 for others.
• What's included in NITT and what's excluded
• How NIIT is impacted by Foreign investment income
• How to cover NIIT liabilities, especially on W-2 income.

Episode Links & Resources

• Treaty-Based Foreign Tax Credits for the NIIT
• Questions And Answers On NIIT From IRS
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process


---------------------------------------------------------------------------------

Be sure to join the conversation by visiting our page: The International Money Cafe

Or by following us on social media:- LinkedIn; Instagram; Twitter (X); Facebook.

------------------------------------------------------------------------------------
The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.