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Line 13 — MAGI Worksheet

Keep for Your Records

1. Enter your Adjusted Gross Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Foreign Earned Income Exclusion:

(a) Enter your Foreign Earned Income Exclusion (from

Line 42 of Form 2555) . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) Enter the deductions reported on Line 44 of Form

2555 allocable to your Foreign Earned Income

Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

)

(c) Combine Lines 2(a) and 2(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Adjustments for Certain CFCs and Certain PFICs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter the sum of Line 1, Line 2(c), and Line 3. (Enter this amount on Form 8960,

Line 13.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1. Decrease AGI by the amount of any

Line 14—Threshold Based on

Line 18b—Deductions for

section 951(a) or 1293(a) inclusions,

Filing Status

Distributions of Net Investment

2. Increase AGI by the amount of any

Income and Deductions Under

The threshold amount is based on your

distributions described in section 959(d) or

filing status.

Section 642(c)

1293(c) included in your net investment

income as a dividend,

The undistributed net investment income

Filing Status

Threshold Amount

of an estate or trust (reported on line 18c)

3. Increase or decrease AGI (as

equals its net investment income (reported

appropriate) by the amount of any

Married Filing Jointly

$250,000

on line 18a) reduced by the net investment

adjustment to gain or loss on the

Qualifying Widow(er)

$250,000

income included in the distributions to

disposition of the CFC or QEF that results

Married Filing

$125,000

beneficiaries deductible by the estate or

in an adjustment to your MAGI,

Separately

trust under section 651 or 661, and by the

4. Increase or decrease AGI (as

net investment income for which the

Single or Head of

$200,000

appropriate) by the amount of any

estate or trust was entitled to a section

Household

adjustment to gain or loss on the

642(c) deduction, in each case as

disposition of an interest in a domestic

calculated under Regulations section

partnership or S corporation that holds a

1.642(c)-2 and the allocation and ordering

CFC or QEF that results in an adjustment

A bankruptcy estate of an individual

rules under Regulations section

to your MAGI,

enters $125,000 and uses Form 8960,

1.662(b)-2. Regulations section

5. Increase or decrease AGI (as

lines 13–17, to compute the tax.

1.1411-3(e) applies the class system of

appropriate) by the amount of any

income categorization, generally

adjustment to investment interest expense

If you’re a U.S. citizen or resident

embodied in sections 651 through 663

under Regulations section 1.1411-10(c)(5)

married to an NRA, your filing status is

and related regulations, to arrive at the

that’s taken into account in computing

married filing separately unless you made

trust's net investment income reduction in

MAGI, and

an election under section 6013(g) or

the case of distributions that are

section 6013(h) to file jointly with your

comprised of both net investment income

6. Increase or decrease AGI (as

NRA spouse. Note that if you made a

and net excluded income items. See

appropriate) by the amount reported to

6013(g) or 6013(h) election to file jointly

Regulations section 1.1411-3(e) for more

you on Schedule K-1 (Form 1041) in

with your NRA spouse, but don’t also elect

information and examples on the

box 14 with a code “H” that requires a

to apply the joint return election for NIIT

calculation of undistributed net investment

MAGI adjustment.

purposes, then, for NIIT purposes, you’ll

income.

CFCs and QEFs held in a section 1411

file as married filing separately and need

trade or business or with a section

Charitable deduction. Report the

to use the applicable threshold amount.

1.1411-10(g) election in effect.

amount of net investment income

Increase AGI by the amount of any

distributed to beneficiaries of the estate or

Line 17—Net Investment Income

distributions described in section 959(d) or

trust and the amount of net investment

Tax for Individuals

1293(c) included in your net investment

income allocated to distributions to charity

income as a dividend (not applicable to

pursuant to section 642(c). The amount of

Form 1040 filers: Include this amount

tax years beginning before 2014).

the deduction for net investment income

on Form 1040, line 62, and see the

distributed to charities under section

instructions there.

If you don’t own (directly or

642(c) is the amount of the net investment

indirectly) any interests in CFCs or

Form 1040NR filers: Include this

TIP

income allocated to the charity in

PFICs, and don’t exclude any

amount on the line of your U.S. residency

accordance with Regulations section

statement corresponding to Form 1040,

foreign earned income on Form 2555,

1.642(c)-2(b) and the allocation and

line 62, and on Form 1040NR, line 60, and

Foreign Earned Income, enter your AGI

ordering rules under Regulations section

from Form 1040 on line 13.

see the instructions there.

1.662(b)-2.

See

Dual-status

individual, earlier.

Form 1041, Schedule A, can be

used as a worksheet to calculate

Estates and Trusts

TIP

the amounts of net investment

Estates and trusts complete lines 18–21.

Instructions for Form 8960 (2017)

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Instructions For Form 8960 - Net Investment Income Tax - Individuals, Estates, And Trusts - 2017 Page 19

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