The Net Investment Income Tax: A Guide to Avoiding the 3.8% Hit
The Net Investment Income Tax (NIIT) is a 3.8% tax imposed on certain types of income, including capital gains, dividends, and interest. Implemented as part of the Affordable Care Act (ACA) in 2010, the NIIT aims to help fund healthcare reform by targeting high-income individuals. If you’re a taxpayer with significant investment income, understanding how … Read more