What is the net investment income tax amount for a single tax filer with a MAGI of $209,055?

To determine the net investment income tax (NIIT) amount for a single tax filer with a Modified Adjusted Gross Income (MAGI) of $209,055, it's important to understand how the NIIT is calculated. The NIIT is applied to the lesser of net investment income (NII) or the amount by which MAGI exceeds the threshold for the tax filer.

For single filers, the threshold for the NIIT is $200,000. In this case, the MAGI of $209,055 exceeds the threshold by $9,055. This means the tax applies to the lesser amount of the individual’s net investment income and the excess over the threshold.

If the net investment income is assumed to be a certain amount, the tax would be 3.8% of either the total net investment income or the excess MAGI over the threshold, whichever is lower.

In this scenario, if we assume that the net investment income is sufficiently high, we can calculate the NIIT:

1. Calculate the excess MAGI over the threshold:

$209,055 - $200,000 = $9,055.

2. Since the tax rate is 3.8%, multiply the excess by this rate: