Question

Which of the following inviduals are not subject to the net investment income tax? A resident...

Which of the following inviduals are not subject to the net investment income tax?

A resident alien

A dual-resident invidual who determines that they are not a resident of a foreign country for tax purposes

Homework Answers

Answer #1

A non resident alien is not subjected to net investment income tax (NIIT), however if he planning to file for a resident alien or is a resident alien , there are special rules for NIIT

Also a dual resident who claims as resident of foreign country for tax purposes is treated as non resident alien (NRA ) is not treated For NIIT

Here, in question the individual claims that he is not a resident of a foreign country for tax purposes

Thus he is subjected to NIIT

So both alternatives given in question is subjected to NIIT

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