The Internal Revenue Service has posted final instructions to Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, to its website.

The instructions provide guidance to taxpayers subject to the 3.8 percent tax.  The tax applies for taxable years beginning Jan. 1, 2013, and applies to the passive income of individuals, trusts and estates with modified adjusted gross income above certain threshold amounts.  The net investment income tax is a surtax at a rate of 3.8% on a base of income that is the lesser of one’s (1) modified adjusted gross income over the threshold amount, or (2) net investment income.

The Form 8960 instructions can be found here.   Form 8960 can be found here.