how to pay the nii tax
you must report your nii on irs form 8960 this form can help entities that are required to pay the tax to calculate their liability the figure on this form is transferred to the appropriate main tax form for individuals the nii tax is reported and paid with form 1040 estates and trusts that must report nii tax do so with form 1041 u s income tax return for estates and trusts 3example of niihere s a hypothetical example to show how net investment income works let s say an individual sells 100 shares of apple aapl for 175 per share and 50 shares of netflix nflx for 170 per share they also received coupon payments for the year on their corporate bonds in the sum of 2 650 and income from a rental property of 16 600 their net investment income can be calculated as 