Does the Net Investment Income Tax affect me as an expat?

This tax applies to U.S. citizens and resident aliens. However, NRAs are exempt unless they’ve elected to be treated as a resident for tax purposes.

The Net Investment Income Tax (NIIT) is a regulation that went into effect Jan 1, 2013. It is part of the Affordable Care Act and applies a 3.8% additional Medicare tax on investment income. Unfortunately, expatriates are not exempt from it.

You are required to pay the NIIT if your adjusted gross income is above certain thresholds. For a single filer, that threshold is $200,000, and for a Married Filing Jointly return, the threshold is $250,000.

If you would like more details you can visit the IRS website.