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Old 09-13-2018, 10:23 PM   #21
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AMT only applies to ordinary income, not capital gains. And if your ordinary is under the AMT exemption ($109,400 MFJ), and your total income is under the phaseout, you’re not going to owe AMT.
Okay. I was used to paying AMT in the past because my wife and I both had decent salaries (for California). I just figured a huge capital gains would somehow push us into the AMT. The calculator linked in my OP indicates this, but it also indicated the NIIT for my estimate was under $1,000, while other sources pegged it over $20K.
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Old 09-13-2018, 10:48 PM   #22
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Okay. I was used to paying AMT in the past because my wife and I both had decent salaries (for California). I just figured a huge capital gains would somehow push us into the AMT. The calculator linked in my OP indicates this, but it also indicated the NIIT for my estimate was under $1,000, while other sources pegged it over $20K.
Well it certainly did until this year.
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Old 09-13-2018, 11:24 PM   #23
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You just take your AGI less standard deduction. And then subtract $250K for MFJ. Then multiply the remainder by 3.8% and that is your NIIT which you add to any other Federal taxes owed.

Turbotax will do it right using the what-if estimator for 2018 rates.
audrey.......I don't think the standard deduction is involved here......just the
MAGI which is often AGI. Also the (AGI - 250K) is compared w/ NII and the 3.8% is multiplied by the lesser of the two https://www.irs.gov/newsroom/questio...ent-income-tax
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Old 09-14-2018, 11:47 AM   #24
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audrey.......I don't think the standard deduction is involved here......just the
MAGI which is often AGI. Also the (AGI - 250K) is compared w/ NII and the 3.8% is multiplied by the lesser of the two https://www.irs.gov/newsroom/questio...ent-income-tax
Thanks - yes I forgot that NIIT uses the amount pre-deductions.

And yes, if your ordinary income MFJ is above $250K, then you won’t be paying the NIIT on your ordinary income above $250K, which was not the OP scenario.
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