From 8960 - Part II, Line 9b Calculation

[G2R]

Hello, 

Client gets hit with the Net Investment Income Tax -- Double checking the 8960 form and ATX has a calculation for Part II, Line 9b.  I'm trying to see how ATX came up with this number.  The instructions say it's obtained by "any reasonable method." Ha!  Thanks for being so specific Mr. IRS.  

I'm not questioning ATX's calculation, I'd just like to know how it was reached for my own knowledge.  Any idea how to find out how ATX calculated this number? 

[Terry D EA]

Try this link. It should give you a better understanding of how the Net Investment Tax is calculated. Examples are at the bottom of the page. Just a suggestion, but in no way should you trust the program calculations. While most are very good and probably spot on, you should calculate various results yourself to be sure the software is calculating correctly.

https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax

[G2R]

5 hours ago, Terry D said:

Try this link. It should give you a better understanding of how the Net Investment Tax is calculated. Examples are at the bottom of the page. Just a suggestion, but in no way should you trust the program calculations. While most are very good and probably spot on, you should calculate various results yourself to be sure the software is calculating correctly.

https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax

Thank you Terry.  ATX and I got to the same investment income number, but I had a slightly different "state, local & foreign income tax expense" number.  (We're only off by $33 bucks so this isn't of real importance.)  But I'm a ridiculous and just want to know how they got their amount.  And all the "JUMP TO" links to give any insight into their calculation. 

[Terry D EA]

Sorry but I don't use ATX any more so I can't be of any help there. $33.00 is a difference I would look into as it appears something is definitely not right. The old ATX use to allow you to bunny hop from the cell to the associated forms for the value. Again, not sure if it is the same today.