Q: I have just been told about new tax law 1411 that imposes a 3.8 percent surtax on the net investment income of individuals, estates and trusts. Can you tell me more?
—Carol Murphy, Woodstock
A: The Net Investment Income Tax (NIIT), which went into effect on Jan. 1, 2013, generally will affect taxpayers, estates and trusts that have a net investment income or an excess of the modified adjusted gross income of more than $200,000 a year. That includes income from "interest, dividends, capital gains, rental and royalty income, and non-qualified annuities," according to IRS.gov. The filing thresholds are:
- Married filing jointly: $250,000
- Single or head of household: $200,000
- Married filing separately: $125,000
“And since only roughly 3 (percent) of the population has modified adjusted gross income in excess of those thresholds, the other 97 (percent) need not worry about the tax,” tax expert Tony Nitti wrote on Forbes.com. NIIT was added to the IRS code as part of the Patient Protection and Affordable Care Act.
Q: The man who hosts the TV show “Cheaters” is named Clark Gable. Is he related to the famous movie star by the same name?
—Mary Thomas, Atlanta
A: Gable, the host of "Cheaters," is the grandson of the Clark Gable who starred in many movies, including "Gone With the Wind." Gable, who also starred in "It Happened One Night" and "Mutiny on the Bounty," among many other films during his 40-year acting career, had two children.
Andy Johnston wrote this column. Do you have a question about the news? We’ll try to get the answer. Call 404-222-2002 or email q&a@ajc.com (include name, phone and city).
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