IRS Publication 550 — Investment Income and Expenses

8582 Passive Activity Loss Limitations 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election T o Report Child's Interest and Dividends 8815 Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989 8818 Optional Form T o Record Redemption of Series EE and I U.S. Savings Bonds Issued After 1989 8824 Like-Kind Exchanges 8832 Entity Classification Election 8912 Credit to Holders of Tax Credit Bonds 8949 Sales and Other Dispositions of Capital Assets 8960 Net Investment Income Tax—Individuals, Estates, and Trusts 8997 Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments See chapter 5, How T o Get Tax Help, for information about getting these publications and forms.

General Information A few items of general interest are covered here. Recordkeeping. You should keep a list of the sources and investment income amounts you receive during the year. Also, keep the forms you receive showing your investment income (Form 1099 -DIV , Form 1099-INT , Form 1099–OID, etc.) as an important part of your records. Net investment income tax (NIIT). The NIIT is a 3. 8% tax on the lesser of your net investment income or the amount of your modified adjusted gross income (MAGI) that is over a threshold amount based on your filing status. Filing Status Threshold Amount Married Filing Jointly or Qualifying Surviving Spouse $250,000 Married Filing Separately $125,000 Single or Head of Household $200,000 See Code section 1411, Form 8960 and the Instructions for Form 8960 for more information. Tax on unearned income of certain children. Form 8615 must be filed for any child who meets all of the following conditions.

1. The child has more than $2,700 of unearned income.

2. The child is required to file a tax return.

3. The child either: a. Was under age 18 at the end of 2025, 8582 8615 8814 8815 8818 8824 8832 8912 8949 8960 8997 b. Was age 18 at the end of 2025 and didn’t have earned income that was more than half of the child's support, or c. Was a full-time student at least age 19 and under age 24 at the end of 2025 and didn’t have earned income that was more than half of the child's support.

4. At least one of the child's parents was alive at the end of 2025.

5. The child doesn’t file a joint return for 2025. See Form 8615 and its instructions for details. However, a parent can choose to include a child's interest and dividends on the parent's return if certain requirements are met. Use Form 8814 for this purpose. Beneficiary of an estate or trust. Interest, dividends, and other investment income you receive as a beneficiary of an estate or trust generally is taxable income. You should receive a Schedule K-1 (Form 1041), from the fiduciary. Your copy of Schedule K-1 (Form 1041) and its instructions should tell you where to report the income on your Form 1040 or 1040-SR.

Taxpayer Identification Number (TIN). You must give your name and TIN (either a social security number (SSN), an employer identification number ( EIN), or an individual tax identification number (ITIN)) to any person required by federal tax law to make a return, statement, or other document that relates to you. This includes payers of interest and dividends. If you do not give your TIN to the payer, you may have to pay a penalty. In addition, if you do not provide a certified TIN on Form W -9, the payer must backup withhold on your interest payments at a rate of 24%. Use Form W-9 to provide the necessary information. See Form W-9 and its instructions.

TIN for joint account. Generally, if the funds in a joint account belong to one person, list that person's name first on the account and give that person's TIN to the payer. (See Joint accounts , later, for information on who owns the funds in a joint account.) If the joint account contains combined funds, give the TIN of the person whose name is listed first on the account.

These rules apply to both a joint ownership by a married couple, and to a joint ownership by other individuals. For example, if you open a joint savings account with your child using funds belonging to the child, list the child's name first on the account and give the child's TIN. Form W-9 and its instructions provide the following: If this Form W-9 is for a joint account (other than an account maintained by a foreign financial institution (FFI)), list first, and then circle the name of the person or entity whose number you entered in Form W -9, Part I. If you are providing Form W-9 to an FFI to document a joint account, each holder of the account that is a U.S. person must provide a Form W-9. See Form W-9 and its instructions. Custodian account for your child. If your child is the actual owner of an account that is recorded in your name as custodian for the child, give the child's TIN to the payer. For example, you must give your child's SSN to the payer 4 Chapter 1 Investment Income Publication 550 (2025)