Get the free Draft of Form 8960 - Internal Revenue Service - irs

Caution: DRAFT FORM NOT FOR FILING This is an early release draft of new IRS Form 8960, Net Investment Income Tax, which the IRS is providing for your information as a courtesy. Do not file draft

How to fill out draft of form 8960

How to fill out draft of form 8960:

1. Gather necessary information: Before starting to fill out form 8960, ensure you have all the required information readily available. This includes details about your investment income, deductions, and any other relevant financial information.
2. Understand the purpose of the form: Form 8960 is used to calculate the Net Investment Income Tax (NIIT). It is important to have a clear understanding of the purpose of this form and whether it applies to your situation. NIIT is imposed on individuals, estates, and trusts that have certain investment income and meet specific income thresholds.
3. Complete personal information: Begin by providing your personal information, including your name, Social Security number or Taxpayer Identification Number, address, and filing status.
4. Report Investment Income: Proceed to report your investment income in the appropriate sections of the form. This includes various types of income such as interest, dividends, capital gains, rental income, and royalties. Refer to your supporting documents, such as Form 1099-DIV and 1099-INT, to accurately report these amounts.
5. Deductions and Allocations: Deductions related to your investment income can be claimed on this form as well. Carefully review the instructions and guidelines to identify any deductions you may be eligible for and report them accurately. Additionally, if you are a partner or S corporation shareholder, you may have to allocate specific items to this form from Schedule K-1.
6. Calculate your Net Investment Income: Once you have reported all relevant income and deductions, follow the instructions to calculate your Net Investment Income (NII). This is the amount on which the NIIT will be calculated.
7. Determine NIIT eligibility: Check the income thresholds provided in the instructions to see if you are subject to the Net Investment Income Tax. If your NII exceeds the threshold, the NIIT will apply.
8. Complete any additional required sections: Review the form instructions to determine if there are any additional sections or schedules that need to be completed based on your specific situation. Provide the necessary information accurately and thoroughly.
9. Double-check your entries: Before submitting the form, carefully review all the information you have provided. Ensure that all calculations are accurate and all fields are properly filled out. Mistakes or omissions could lead to processing delays or potential tax issues.

Who needs draft of form 8960?

1. Individuals with significant investment income: If you have substantial investment income from sources such as interest, dividends, capital gains, rental income, or royalties, you may need to fill out form 8960 to determine if you are subject to the Net Investment Income Tax (NIIT).
2. Estates and trusts: Estates and certain types of trusts that generate investment income may also need to complete form 8960. The NIIT applies to estates and trusts that meet the income thresholds specified by the IRS.
3. Taxpayers meeting specific income thresholds: The form is necessary for individuals, estates, and trusts that have investment income and meet certain income thresholds set by the IRS. These thresholds vary depending on the taxpayer's filing status and whether they are classified as a single individual or married/jointly filing.

It is important to consult a tax professional or refer to the official IRS guidelines and instructions for form 8960 to ensure accurate completion based on your specific circumstances.

For pdfFiller’s FAQs

What is draft of form 8960?

Form 8960 is the Net Investment Income Tax—Individuals, Estates, and Trusts form used to report and calculate the Net Investment Income Tax.

Who is required to file draft of form 8960?

Individuals, estates, and trusts are required to file Form 8960 if they have net investment income and their modified adjusted gross income exceeds certain thresholds.

How to fill out draft of form 8960?

Form 8960 should be filled out by providing information about the taxpayer's net investment income, modified adjusted gross income, and any other relevant information required to calculate the Net Investment Income Tax.

What is the purpose of draft of form 8960?

The purpose of Form 8960 is to calculate and report the Net Investment Income Tax that may be owed by individuals, estates, and trusts with significant investment income.

What information must be reported on draft of form 8960?

Information such as net investment income, modified adjusted gross income, and any applicable deductions or exclusions must be reported on Form 8960.

How can I edit draft of form 8960 from Google Drive?

You can quickly improve your document management and form preparation by integrating pdfFiller with Google Docs so that you can create, edit and sign documents directly from your Google Drive. The add-on enables you to transform your draft of form 8960 into a dynamic fillable form that you can manage and eSign from any internet-connected device.

How do I make edits in draft of form 8960 without leaving Chrome?

Get and add pdfFiller Google Chrome Extension to your browser to edit, fill out and eSign your draft of form 8960, which you can open in the editor directly from a Google search page in just one click. Execute your fillable documents from any internet-connected device without leaving Chrome.

How can I fill out draft of form 8960 on an iOS device?

Install the pdfFiller app on your iOS device to fill out papers. Create an account or log in if you already have one. After registering, upload your draft of form 8960. You may now use pdfFiller's advanced features like adding fillable fields and eSigning documents from any device, anywhere.