Article: 50549

Overview 

Schedule NIIT is used to calculate the Minnesota Net Investment Income Tax, which applies to an additional 2.5% tax on certain high levels of net investment income. If you meet the income threshold, you must complete this form as part of your Form M1 (Minnesota Individual Income Tax Return). 

Who Must File Schedule NIIT? 

You must complete Schedule NIIT if: 

• Your federal adjusted gross income (AGI) exceeds: 

• $250,000 for Married Filing Jointly or Qualifying Widow(er) 

• $200,000 for Single or Head of Household 

• $125,000 for Married Filing Separately 

• You have net investment income, including: 

• Interest and dividends 

• Capital gains. 

• Rental and royalty income 

• Income from passive partnerships, S corps, or trusts 

Note: This Minnesota tax is separate from the federal Net Investment Income Tax (NIIT), though the structure is similar. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select Minnesota. 

4. Click on the General tab. 

5. Select MN Schedule NIIT, Net Investment Tax to open the screen. 

6. Enter any adjustments or overrides. 

7. Click Save once complete. 

Additional Resources 

For more information, see:  

https://www.revenue.state.mn.us/sites/default/files/2024-12/niit-24.pdf

https://www.revenue.state.mn.us/form/m1-individual-income-tax