U.S. · Form 8960 line 17
Form 8960 line 17 NIIT.
The Part III sequence for individuals, from line 12 to the 3.8% tax.
Line 17 is the net investment income tax for individuals: line 16 times 3.8%. Line 15 is MAGI (line 13) minus the threshold (line 14), not below zero; line 16 is the smaller of net investment income (line 12) or line 15. Form 1040 and 1040-SR filers include line 17 on Schedule 2 (Form 1040), line 12.
Step through lines 12 to 17
Result
Reference table
| Line | What it holds |
|---|---|
| Line 12 | Net investment income: Part I line 8 minus Part II line 11. |
| Line 13 | Modified adjusted gross income. |
| Line 14 | Threshold based on filing status. |
| Line 15 | Line 13 minus line 14. If zero or less, enter -0-. |
| Line 16 | The smaller of line 12 or line 15. |
| Line 17 | Line 16 times 3.8% (0.038). Form 1040 and 1040-SR: Schedule 2 (Form 1040), line 12. |
The rule
The instructions state that individuals who have, for the tax year, (a) MAGI over an applicable threshold and (b) net investment income, pay 3.8% of the smaller of (a) the excess over the threshold or (b) the net investment income. Line 17 is exactly that. If you file Form 1040-NR, include the amount on the line of your U.S. residency statement that corresponds to Schedule 2 (Form 1040), line 12.
Worked example
A single filer has net investment income of $60,000 and MAGI of $245,000. Line 14 is $200,000, so line 15 is $45,000. Line 16 is the smaller of $60,000 and $45,000, which is $45,000, and line 17 is $45,000 × 0.038 = $1,710.00. If MAGI were $300,000, line 15 would be $100,000 and line 16 would be the NII of $60,000, for a tax of $2,280. The figures are illustrative.
Estates and trusts
Individuals complete lines 13 to 17. Estates and trusts complete lines 18 to 21 instead, using undistributed net investment income and the adjusted gross income over the highest bracket threshold, so they should not use this page. Inputs to this page: line 8, line 13 and the line 14 threshold.
Relation to the existing NIIT calculator
The NIIT calculator estimates the tax from your income. This page is a line decoder for the form: it shows the Part III arithmetic as printed in the 2025 instructions and form, so you can tie out each line.
Sources
- Instructions for Form 8960 (2025): Who must pay, line 17 and the Part III steps. Read November 2, 2026.
- Form 8960 (2025): The form itself, for exact line wording. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is line 17 on Form 8960?
The net investment income tax for individuals: line 16 multiplied by 3.8% (0.038).
How is line 16 on Form 8960 figured?
It is the smaller of line 12 (net investment income) or line 15 (MAGI minus the threshold, not below zero).
Where does line 17 go on Form 1040?
Schedule 2 (Form 1040), line 12. Form 1040-NR filers use the corresponding line of the U.S. residency statement.
Who pays the net investment income tax?
Individuals with MAGI over the threshold for their filing status who also have net investment income, as the instructions state.
Do estates and trusts use line 17?
No. They complete lines 18 to 21 on the form.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.