Instructions For Form 8960 (2015) (Page 19 of 20) in pdf

Line 13 — MAGI Worksheet

Keep for Your Records

1. Enter your Adjusted Gross Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Foreign Earned Income Exclusion:

(a) Enter your Foreign Earned Income Exclusion (from

Line 42 of Form 2555) . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) Enter the deductions reported on Line 44 of Form

2555 allocable to your Foreign Earned Income

Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

)

(c) Combine Lines 2(a) and 2(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Adjustments for Certain CFCs and Certain PFICs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter the sum of Line 1, Line 2(c), and Line 3. (Enter this amount on Form 8960,

Line 13.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Increase AGI by the amount of any

If you do not own (directly or

Line 18b—Deductions for

gain treated as an excess distribution

indirectly) any interests in CFCs

Distributions of Net Investment

TIP

under section 1291 included in MAGI but

or PFICs, and do not exclude any

Income and Deductions Under

not included in gross income for regular

foreign earned income on Form 2555,

Section 642(c)

income tax purposes.

Foreign Earned Income, enter your AGI

from Form 1040, line 38 on line 13.

The undistributed net investment income

CFCs and QEFs without a section

of an estate or trust (reported on line 18c)

1.1411-10(g) election in effect.

equals its net investment income (reported

Line 14—Threshold Based on

1. Decrease AGI by the amount of any

on line 18a) reduced by the net investment

section 951(a) or 1293(a) inclusions,

Filing Status

income included in the distributions to

2. Increase AGI by the amount of any

beneficiaries deductible by the estate or

The threshold amount is based on your

distributions described in section 959(d) or

trust under section 651 or 661, and by the

filing status.

1293(c) included in your net investment

net investment income for which the

income as a dividend,

estate or trust was entitled to a section

Filing Status

Threshold Amount

642(c) deduction, in each case as

3. Increase or decrease AGI (as

calculated under Regulations section

Married Filing Jointly

$250,000

appropriate) by the amount of any

1.642(c)-2 and the allocation and ordering

adjustment to gain or loss on the

Qualifying Widow(er)

$250,000

rules under Regulations section

disposition of the CFC or QEF that results

with Dependent Child

1.662(b)-2. Regulations section

in an adjustment to your MAGI,

Married Filing

$125,000

1.1411-3(e) applies the class system of

4. Increase or decrease AGI (as

Separately

income categorization, generally

appropriate) by the amount of any

Single or Head of

$200,000

embodied in sections 651 through 663

adjustment to gain or loss on the

Household

and related regulations, to arrive at the

disposition of an interest in a domestic

trust's net investment income reduction in

partnership or S corporation that holds a

the case of distributions that are

CFC or QEF that results in an adjustment

comprised of both net investment income

A bankruptcy estate of an individual

to your MAGI,

and net excluded income items. See

enters $125,000 and uses Form 8960,

5. Increase or decrease AGI (as

Regulations section 1.1411-3(e) for more

lines 13-17, to compute the tax.

appropriate) by the amount of any

information and examples on the

adjustment to investment interest expense

calculation of undistributed net investment

Line 17—Net Investment Income

under Regulations section 1.1411-10(c)(5)

income.

that is taken into account in computing

Tax for Individuals

Charitable deduction. Report the

MAGI, and

Form 1040 filers: Include this amount

amount of net investment income

6. Increase or decrease AGI (as

on Form 1040, line 62, and see the

distributed to beneficiaries of the estate or

appropriate) by the amount reported to

instructions there.

trust and the amount of net investment

you on Schedule K-1 (Form 1041) in

Form 1040NR filers: Include this

income allocated to distributions to charity

box 14 with a code “H” that requires a

amount on the line of your U.S. residency

pursuant to section 642(c). The amount of

MAGI adjustment.

statement corresponding to Form 1040,

the deduction for net investment income

line 62, and on Form 1040NR, line 60, and

distributed to charities under section

CFCs and QEFs held in a section 1411

see the instructions there.

642(c) is the amount of the net investment

trade or business or with a section

income allocated to the charity in

1.1411-10(g) election in effect.

See

Dual-status

individual.

accordance with Regulations section

Increase AGI by the amount of any

1.642(c)-2(b) and the allocation and

Estates and Trusts

distributions described in section 959(d) or

ordering rules under Regulations section

1293(c) included in your net investment

Estates and trusts complete lines 18-21.

1.662(b)-2.

income as a dividend (not applicable to

tax years beginning before 2014).

Instructions for Form 8960 (2015)

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Instructions For Form 8960 (2015) Page 19

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