Fill Out Form 8960 in Seconds with AI

Upload your Form 8960, and Simplicity AI automatically calculates net investment income, deductions, and applicable taxes. Whether you have one investment or dozens, stop manually entering the same data across multiple lines.

AI converts your 8960 into a smart, interactive form. No misaligning numbers or miscalculating income.

Upload brokerage statements, dividend reports, or rental income records as source documents, and AI extracts data directly into the form.

Reporting multiple income streams? Auto-fill all sections consistently and accurately.

Form INFORMATIONS

Part I – Investment Income:

Enter all taxable interest, dividends, capital gains, rental income, royalties, and other investment income. AI ensures each type of income is reported in the correct line item.

Part II – Investment Expenses:

Report allowable deductions related to investment income, such as investment advisory fees or expenses for rental properties. Subtract these from your total investment income to calculate net investment income.

Part III – Net Investment Income Tax:

Combine net investment income with modified adjusted gross income (MAGI) to calculate the 3.8% Net Investment Income Tax (NIIT) if your income exceeds IRS thresholds. AI performs all calculations automatically.

Personal Information:

Enter your name, Social Security Number, and filing status exactly as filed on your Form 1040 or 1041. AI maps NIIT results directly to your tax return.

Calculation of Tax:

AI sums net investment income, applies the 3.8% rate where applicable, and provides the NIIT amount for your return. This ensures accurate reporting and avoids underpayment or overpayment penalties.

WHAT IS FORM 8960?

What Is Form 8960 and Who Needs to File It?

IRS Form 8960, officially called "Net Investment Income Tax," calculates the 3.8% tax on certain investment income for high-income individuals, estates, and trusts. You must file Form 8960 if your modified adjusted gross income (MAGI) exceeds IRS thresholds and you have net investment income.

Unlike brokerage statements or 1099s, which only report income, Form 8960 organizes your investment income, applies allowable deductions, and calculates the NIIT for accurate reporting on your Form 1040 or 1041.

If any of the following describe you, you need to file Form 8960: You have taxable interest, dividends, or capital gains from securities. You receive rental income, royalties, or other investment income. Your MAGI exceeds $200,000 for single filers, $250,000 for married filing jointly, or applicable estate/trust thresholds.

Form 8960 ensures the IRS receives an accurate NIIT calculation. Manual calculations can be complex, especially when there are multiple income streams. That's where Simplicity AI comes in.

How to Fill Out Your 8960 Online in 6 Simple Steps

Upload your Form 8960 PDF to Simplicity AI. The AI scans the form layout, detects income and deduction fields, and converts it into a guided questionnaire.

Enter your personal information: name, SSN, and filing status. This links your NIIT calculation to your tax return.

Upload brokerage statements, dividend reports, or rental income records. AI automatically extracts investment income and expenses.

Enter any additional income or deductions manually if needed. AI calculates net investment income and applies the 3.8% NIIT where applicable.

Review all fields to ensure income, deductions, and NIIT match your source documents. Accuracy is critical to avoid underpayment or overpayment.

Export your completed Form 8960 as a clean PDF. Submit with your tax return or electronically where allowed. Keep copies of statements for verification.

Super Fast

Complete each Form 8960 in minutes. Multiple income streams? Upload all statements and auto-fill each section efficiently.

AI-Powered

Simplicity AI understands the 8960 structure and maps investment income, deductions, and NIIT calculations correctly.

Secure

Your forms contain SSNs, investment income, and sensitive financial data. Documents are encrypted, private, and never shared.

FAQs

FORM 8960: Frequently Asked Questions

Who needs to file Form 8960?

Anyone with net investment income and modified adjusted gross income above IRS thresholds must file. This includes high-income individuals, estates, and trusts.

How do I fill out Form 8960 online for free?

Upload your 8960 PDF to Simplicity AI. Enter investment income and deductions, and AI automatically calculates NIIT. Export a clean PDF for submission.

What types of income are included in Form 8960?

Taxable interest, dividends, capital gains, rental income, royalties, and passive business income.

When is Form 8960 due?

Form 8960 is filed with your tax return (typically April 15). Late filing may result in underpayment penalties.

Can I file multiple investment streams at once?

Yes. AI allows you to upload multiple brokerage statements, rental income records, and other investment sources to calculate NIIT accurately.

Is my data secure?

Yes. Form 8960 contains SSNs, investment income, and sensitive financial data. Simplicity AI encrypts all documents and keeps your information private.

Common Mistakes When Filing Form 8960
(and How AI Prevents Them)

Incorrect Income Reporting

Missing dividends, capital gains, or rental income can understate NIIT. AI extracts all income from uploaded statements.

Failing to Apply Deductions

Investment expenses and losses reduce net investment income. AI applies allowable deductions correctly.

Misclassifying Income

Income type affects the NIIT calculation. AI ensures proper categorization.

Calculation Errors

Manual addition or subtraction can lead to miscalculations of NIIT. AI calculates totals automatically.

Missing Filing Thresholds

Form 8960 only applies when MAGI exceeds IRS limits. AI flags if NIIT is required.

Not Keeping Source Documents

Proof of income and deductions is required. AI integrates statements as source documents for verification.

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