Another Obamacare Tax Clarified by the IRS
So, the tax that was supposed to hit high income earners now also can affect children under certain conditions involving investment. Taxpayers — take note!
The Weekly Standard discusses a newly clarified component of the Obamacare 3.8% Investment Surcharge Tax:
“Last Friday, the IRS published a tip on its website entitled “Tax Rules for Children with Investment Income.” Included is this note regarding the Net Investment Tax [emphasis added]:
Starting in 2013, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax. NIIT is a 3.8% tax on the lesser of either net investment income or the excess of the child’s modified adjusted gross income that is over a threshold amount”