Instructions:

[Sec6013g] If you’re making the section 6013(g) or 6013(h) election (see Election To File Jointly 
With Nonresident Spouse—Section 6013(g) or 6013(h), earlier), check the corresponding checkbox.


[Sec1141_10g] If you’re making or have made a section 1.1411-10(g) election (see Regulations 
Section 1.1411-10(g) Election, earlier), check the corresponding checkbox and attach a statement to 
your return, as described earlier under Content requirements of election.

[L1] Enter the amount of taxable interest received. Include the
following amount from your return.
• Form 1040 or 1040-SR, line 2b.
• Form 1041, line 1.
• Form 1041-QFT, line 1a.
• Form 1040-NR, taxable interest received for period of U.S.
residency shown on attached statement.
See Special computational rules for qualified funeral trusts
(QFTs) and Dual-status individual, earlier.
Adjustments to interest. Interest income earned in the
ordinary course of your non-section 1411 trade or business is
excluded from net investment income. If this type of interest
income is included on line 1, use line 7 to adjust your net
investment income.
If line 1 includes self-charged interest income received from a
partnership or S corporation that’s a nonpassive activity (other
than a trade or business of trading in financial instruments or
commodities), see Line 7—Other Modifications to Investment
Income, later, for a possible adjustment to net investment
income.

[L2] Enter the amount of ordinary dividends received. Include the
following amount from your return.
• Form 1040 or 1040-SR, line 3b.
• Form 1041, line 2a.
• Form 1041-QFT, line 2a.
• Form 1040-NR, ordinary dividends received for period of U.S.
residency shown on attached statement.
See Special computational rules for qualified funeral trusts
(QFTs) and Dual-status individual, earlier.
Adjustments to dividends. If line 2 includes dividends from
employer securities held in an employee stock ownership plan
(ESOP) that are deductible under section 404(k) or Alaska
Permanent Fund Dividends, include those amounts as negative
modifications on line 7. See Line 7—Other Modifications to
Investment Income, later.

[L3] Enter the gross income from all annuities, except annuities paid
from the following.
• Section 401—Qualified pension, profit-sharing, and stock
bonus plans.
• Section 403(a)—Qualified annuity plans purchased by an
employer for an employee.
• Section 403(b)—Annuities purchased by public schools or
section 501(c)(3) tax-exempt organizations.
• Section 408—Individual retirement accounts (IRAs) or
annuities.
• Section 408A—Roth IRAs.
• Section 457(b)—Deferred compensation plans of a state and
local government and tax-exempt organization.
• Amounts paid in consideration for services (for example,
distributions from a foreign retirement plan that are paid in the
form of an annuity and include investment income that was
earned by the retirement plan).

[L4a] Enter the following amount from your properly completed return.
• Schedule 1 (Form 1040), line 3.
• Schedule 1 (Form 1040), line 5.
• Form 1041, line 3.
• Form 1041, line 5.
• Form 1041-QFT, the portion of line 4 that’s income and loss
that properly would be reported by a trust filing Form 1041 on
Form 1041, line 5.
• Form 1040-NR, the amount properly reported on the
attachment to your Form 1040-NR representing the amount that
you would properly include on Schedule 1 (Form 1040), line 5, if
you were filing Form 1040 or 1040-SR and including income and
loss only for your period of U.S. residency.

[L4b] Use line 4b to adjust the amounts included on line 4a, for gains
and losses that are excluded from the calculation of net
investment income. Enter the amount of gains (as a negative
number) and losses (as a positive number). Enter the net
positive or net negative amount for the following items included
on line 4a that aren’t included in determining net investment
income.
• Net income or loss from a section 162 trade or business that’s
not a passive activity and isn’t engaged in a trade or business of
trading financial instruments or commodities.
• Net income or loss from a section 1411 trade or business
that’s taken into account in determining self-employment
income.
• Royalties derived in the ordinary course of a section 162 trade
or business that’s not a passive activity.
• Passive losses of a former passive activity that are allowed as
a deduction in the current year under section 469(f)(1)(A).
In addition, use line 4b to adjust for certain types of
nonpassive rental income or loss derived in the ordinary course
of a section 162 trade or business. For example, line 4b includes
the following items.

[L5a] Calculate and enter the amount of net gain or loss from the
disposition of property by combining the following amounts from
your properly completed return.
• Form 1040 or 1040-SR, line 7, and Schedule 1 (Form 1040),
line 4.
• Form 1041, lines 4 and 7.
• Form 1041-QFT, line 3, and the portion of line 4 attributed to
ordinary gain/(loss).
• Form 1040-NR, the amounts properly reported on the
attachment to your Form 1040-NR representing the amounts that
you would enter on Form 1040 or 1040-SR, line 7, and Schedule
1 (Form 1040), line 4, if you were filing Form 1040 or 1040-SR
and including net gain or loss only for your period of U.S.
residency.

[L5b] Use line 5b to adjust the amounts included on line 5a for gains
and losses that are excluded from the calculation of net
investment income. Enter the amount of gains (as a negative
number) and losses (as a positive number) included on line 5a
that are excluded from net investment income.
See Instructions for Examples and Woksheets

[L5c] Enter the amount from the worksheet for lines 5a–5d, line 3d.
Attach a statement as described in Required statements, earlier,
to your return for the year of the disposition.

[L6] If you own stock, directly or indirectly, in a CFC or a PFIC (other
than certain CFCs and PFICs held in a section 1411 trade or
business or PFICs marked to market under a provision of Code
chapter 1 other than section 1296), use line 6 for adjustments
necessary to calculate your net investment income.

See Instructions

[L7] Use line 7 to report additional net investment income
modifications to net investment income that aren’t otherwise
specified on lines 1–6. For example, use line 7 to report additions
and modifications to net investment income.

See Instructions for Worksheet

[L9a]Enter on Form 8960, line 9a, interest expense you paid or
accrued during the tax year deducted on Schedule A (Form
1040), line 9. Estates and trusts enter the amount from Form
4952, line 8 (if not required to file Form 4952, use the form as a
worksheet). For individuals filing a Form 1040-NR, include only
the amount of investment interest expense deduction for your
U.S. residency period.

See Instruction for Notes

[L9b]Include state, local, and foreign income taxes you paid for the tax
year that are attributable to net investment income. Form
1040-NR filers include only taxes paid for the U.S. residency
period of the tax year. Sales taxes aren’t deductible in computing
net investment income. You may not take a deduction for any
foreign income taxes paid for the tax year if you took a credit for
any portion of them. See section 275(a)(4).

See Instructions for Worksheets for lines 9 and 10

[L9c] Investment expenses you incur that are directly connected to the
production of investment income are deductible expenses in
determining your net investment income. Generally, these
amounts are reported on Form 4952, line 5. See Form 4952 for
the instructions for line 5 for more information. The amounts
reported on line 9c are the amounts allowable after the
application of the deduction limitations imposed by sections 67
and 68.

[L10] Use line 10 to report additional deductions and modifications to
net investment income that aren’t otherwise reflected on lines 1–
9. Enter amounts on line 10 as positive numbers.
Note. Enter the amount on line 10 after the application of
section 67 or 68. See Lines 9 and 10—Application of Itemized
Deduction Limitations on Deductions Properly Allocable to
Investment Income Worksheet in these instructions for
assistance in figuring the amount to report on line 10.

See Caution regarding miscellaneous itemized deductions,
earlier.

[L13] If you didn’t exclude any amounts from your gross income under
section 911 and you don’t own a CFC or PFIC, your MAGI is your
AGI as reported on Form 1040 or 1040-SR. If you exclude
amounts under section 911 or own certain CFCs or PFICs, your
MAGI is your AGI as modified by certain rules described in
Regulations section 1.1411-10(e)(1).

See Instructions

[L18b] The undistributed net investment income of an estate or trust
(reported on line 18c) equals its net investment income (reported
on line 18a) reduced by the net investment income included in
the distributions to beneficiaries deductible by the estate or trust
under section 651 or 661, and by the net investment income for
which the estate or trust was entitled to a section 642(c)
deduction, in each case as calculated under Regulations section
1.642(c)-2 and the allocation and ordering rules under
Regulations section 1.662(b)-2. In the case of the S portion of an
Electing Small Business Trust, as defined by section 1361(e),
net investment income is further reduced by the net investment
income for which the trust was entitled to a section 170
deduction. See Section 641(c)(2)(E).

[L19a] If the estate or trust doesn’t own a CFC or PFIC, enter its AGI for
regular income tax purposes.
If the estate or trust owns a CFC or PFIC, it may need to make
adjustments. See Line 13—Modified Adjusted Gross Income
(MAGI), earlier.

[L19b] See the instructions for Form 1041, Schedule G, line 1a, and the
instructions for Form 1041-QFT, line 12, for the dollar amount at
which the highest tax bracket begins for the tax year and enter
that amount here.

In the case of a QFT, see Special computational rules for
qualified funeral trusts (QFTs), earlier, to determine the amount
to report on Form 8960, line 19b.

