how do i calculate my net investment income tax 
you can use irs form 8960 to calculate your net investment income tax you can also calculate it yourself by adding together all your investment income and subtracting any related fees and expenses then determine your modified adjusted gross income you pay 3 8 on whichever is less either your net investment income or the portion of your magi that exceeds your tax filing threshold as set by the internal revenue service 3can i avoid paying the net investment income tax there are ways to avoid qualifying for the niit the key is keeping your modified adjusted gross income under the threshold talk to a tax professional or another financial professional to see what steps you can take to decrease your tax liability when it comes to your investments the bottom lineinvestments can be used to prepare for the future or to help pay for unexpected emergencies such as car repairs or medical care although they may give you a cushion when you need it most that investment income can add to your annual tax bill this may come in the form of a net investment income tax net investment income is any money you earn from your investments less any related fees and expenses the tax will be imposed on the amount that your modified adjusted gross income exceeds your tax filing threshold or on the total amount of your nii correction nov 16 2023 this article has been corrected to state that you can reduce your adjusted gross income agi and tax liabilities with contributions to qualified retirement plans 