Reply To: Net Investment Income Tax

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#2461
KAWill
Participant

The Form 8960 instructions for Line 9b state the following: “Include state, local, and foreign income taxes you paid for the tax year that are attributable to net investment income.”

To confirm my understanding of this thread, one can deduct properly allocated state taxes that are also being deducted on Form 1040 Schedule A. Am I correct that “attributable to net investment income” means net investment income of any applicable tax year? I also understand that one must be itemizing deductions.

Lastly, I assume that a separate calculation is required when allocating taxes from different tax years. Let me know if my understanding is correct.