Ep 49: What Is English For "Net Investment Income Tax (NIIT)?"

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The International Money Café Show

The International Money Cafe

58 episodes

1 week ago

Foreign-born US citizens, green card holders (immigrants) in the US, and foreign nationals on temporary nonimmigrant US visas, have unique financial & US tax compliance challenges as they straddle their multi-country footprint.

US expats living abroad have somewhat similar challenges from having to deal with US taxes and foreign obligations.

In "The International Money Café Podcast" Jane Mepham, CFP®, and Manasa Nadig, EA, address these unique challenges over a cup of Coffee/Chai in addition to talking about life in the US.

Join them as they filter out the noise on cross-border taxes, finances, and life in the US, and save you hours combing the internet for information relevant to your situation.

Jane & Manasa being foreign-born, are able to address these issues from a very personal and relatable point of view every other week, as they walk the same journey and pursue their own version of the American dream.

The views and opinions are those of the speakers, and should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

All content for The International Money Café Show is the property of The International Money Cafe and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.

Ep 49: What Is English For "Net Investment Income Tax (NIIT)?"

The International Money Café Show

9 minutes

4 months ago

Ep 49: What Is English For "Net Investment Income Tax (NIIT)?"

What's NIIT?

We discuss NIIT (Net Investment Income Tax), explaining its implications for individuals with investment income and also how it applies in cross-border situations.

We cover the statutory thresholds for the tax, what constitutes net investment income, and the reporting requirements.

We also touch on some fascinating recent court cases that have impacted the application of the NIIT for expats and the potential for foreign tax credits.

Takeaways

The Net Investment Income Tax (NIT) is a 3.8% tax on certain investment income.
There are specific thresholds based on the filing status: $250,000 for married filing jointly, $125,000 for single, and $200,000 for others.
What's included in NITT and what's excluded
How NIIT is impacted by Foreign investment income
How to cover NIIT liabilities, especially on W-2 income.

Episode Links & Resources

Treaty-Based Foreign Tax Credits for the NIIT
Questions And Answers On NIIT From IRS
Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.