Line 13 — MAGI Worksheet
Keep for Your Records
1. Enter your Adjusted Gross Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Adjustments for Certain CFCs and Certain PFICs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Enter the sum of Line 1, Line 2(c), and Line 3. (Enter this amount on Form 8960,
Line 13.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
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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