How Net Investment Income Tax Hits High Earners Unexpectedly

Episode 61 of The Tax Policy Podcast dives into a tax that catches many high earners off guard: the Net Investment Income Tax, or NIIT. Lucas and Luna explore how this 3.8 percent surtax, created to fund the Affordable Care Act, applies to investment income above certain thresholds. They break down what counts as investment income, who gets hit, and why it often surprises retirees and small business owners selling property. With real examples and clear explanations, this episode helps listeners understand a tax that can add thousands to a tax bill without warning. Perfect for anyone navigating capital gains, rental income, or portfolio income in 2026. #NetInvestmentIncomeTax #NIIT #ACA #AffordableCareAct #HighEarners #InvestmentIncome #CapitalGains #PassiveIncome #TaxSurtax #FiscalPolicy #MedicareTax #RentalIncome #SmallBusiness #RetireeTax #TaxPlanning #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo