Thank you, Jonathan, for another great article. I'd like to add another tax to your list: the Net Investment Income Tax (NIIT). This tax, used to help fund the Affordable Care Act (ACA), applies to investment income exceeding $250,000 annually (this threshold is not adjusted for inflation).
This means that capital gains, dividends, interest, and other investment income above that amount are subject to an additional 3.5% tax. This can significantly impact the after-tax income of many retirees who rely on investment income.
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Thank you, Jonathan, for another great article. I'd like to add another tax to your list: the Net Investment Income Tax (NIIT). This tax, used to help fund the Affordable Care Act (ACA), applies to investment income exceeding $250,000 annually (this threshold is not adjusted for inflation). This means that capital gains, dividends, interest, and other investment income above that amount are subject to an additional 3.5% tax. This can significantly impact the after-tax income of many retirees who rely on investment income.
Post: A Taxing Retirement
Link to comment from November 16, 2024