Josh Scandlen Podcast

When President Obama signed the “Affordable Care Act”, aka Obamacare, it came with a pretty significant tax bite called the Net Investment Income Tax (NIIT).   From the IRS:  “The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.” Now, you may be thinking, “I don’t have anywhere near that $250,000 in MAGI to worry about this tax.  So, what’s the big deal?” See where it says: “Taxpayers should be aware that these threshold amounts are not indexed for inflation”? (Emphasis mine). Not indexed for inflation...  Hmmmm..where have we heard that before? Oh yeah, the provisional income rules for the taxation of Social Security benefits as well as the Alternative Minimum Tax.  When the legislation to tax Social Security and then the Alternative Minimum Tax were first enacted very few people were affected, thus no outrage, as only “the rich” paid.  Now almost everyone pays some tax on t