Allison Houck
Alison L. Houck Andrew, CPA, Managing Partner of Faw Casson's Rehoboth Beach office and former NASBA Middle Atlantic regional director; guest on the Accounting and Accountability podcast.
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APPEARANCES
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PODCASTS
Sep 18, 2026
BrianHOST
So make sure you're reviewing and things make sense to you when you're looking at your tax situation.
Allison HouckGUEST
I want to remind our listeners about the net investment income tax, also considered NIT.
Allison HouckGUEST
So this is that extra 3.8% tax that gets added on beyond, you know, your traditional tax when you have significant investment income and you also have significant income.
Allison HouckGUEST
So this applies when you have modified adjusted gross income of over $200,000 if you're single, $250,000 joint, or $125,000 married filing separately.
Allison HouckGUEST
So all passive business income, passive income, this will all be subject to this extra 3.8% net investment income tax.
Allison HouckGUEST
And to determine whether any of your business income is subject to the NIT, your material participation really comes into play.
BrianHOST
But just just know that.