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The net investment income tax
The health care law also tacks a 3.8 percent tax on wealthier taxpayers' investment income. This net investment income tax applies to taxable capital gains, dividends, interest, rental income and certain annuities, among other types of income.
The income thresholds are the same as for the Medicare tax with one exception: For qualifying widows and widowers the threshold is higher.
|Filing status||Income amount|
|Married filing jointly||$250,000|
|Married filing separately||$125,000|
|Head of household||$200,000|
|Qualifying widow/widower with dependent child||$250,000|
Again, these income limits are not indexed for inflation.
The tax applies to the lesser of these:
- Your annual net investment income
- The amount of your modified adjusted gross income that exceeds your income threshold from the list above
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