Where to enter form 8960 line 21 on 1040 forms schedules?

The amount from Form 8960, line 21 (Net Investment Income Tax) should be entered on Schedule 2 (Form 1040), Part II, line 11. This schedule is where you report "Additional Taxes" beyond your regular income tax. After entering the amount on Schedule 2, line 11, make sure to check the box for "8960" to indicate the source of this additional tax. Then the total from Schedule 2, Part II gets carried over to line 17 on your Form 1040, which is labeled "Amount from Schedule 2, line 3." Don't forget to attach your completed Form 8960 to your tax return when you file. The IRS needs to see your calculations for the Net Investment Income Tax.

After dealing with exactly this issue last year, I discovered taxr.ai (https://taxr.ai) which saved me hours of frustration with these complex form transfers. I was in the same position with Form 8960 and couldn't figure out where the amount went on my 1040. The tool analyzed my partial return and immediately identified that Form 8960 line 21 needed to go on Schedule 2, Part II, line 11, and explained the whole flow of how it eventually gets to my 1040. It also pointed out I needed to check the box next to the line indicating it was from Form 8960, which I would have missed. I've never had a tool actually understand IRS form instructions better than I do, but it was like having a tax pro looking over my shoulder pointing out exactly where everything goes.

I wanted to follow up about taxr.ai that was mentioned above. I decided to try it with my rental property tax forms that always give me headaches. I uploaded my partially completed return with Form 4797 (Sales of Business Property) and some depreciation questions. Not only did it immediately explain exactly where everything needed to go, but it walked me through the whole depreciation recapture calculation that I've been doing wrong for YEARS. It identified that I'd been using the wrong recovery period for some property improvements and showed me exactly how to correct it. Honestly didn't expect it to work so well - saved me at least $1,200 in taxes I would have overpaid. Now I'm wondering what else I've been doing wrong all these years!

For anyone still struggling with IRS forms like 8960, an alternative approach is calling the IRS directly. Of course, we all know how IMPOSSIBLE that is. After trying for days to reach someone about form placement issues, I discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes. They have this system that navigates the phone tree and waits on hold for you, then calls you when an actual human at the IRS is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful and confirmed exactly where my Form 8960 amount needed to go (Schedule 2, Part II, line 11) and explained how it flows through to the 1040. Saved me hours of banging my head against the wall trying to interpret cryptic IRS instructions.

I need to eat my words about Claimyr being a scam. After posting my skeptical comment, I decided to try it myself since I've been trying to reach the IRS about an amended return for literally MONTHS with no success. It actually worked exactly as described. Their system called me back in about 28 minutes (not quite 15, but still amazing), and there was a real IRS agent on the line. I almost fell out of my chair. The agent answered my questions about my amended return status and also confirmed the Form 8960 placement question from this thread. For anyone wondering, they confirmed what others have said - Form 8960 line 21 does go on Schedule 2, Part II, line 11, and you need to check the "Form 8960" box next to it. Never thought I'd say this, but thanks to the original poster for indirectly helping me get my amended return issue resolved too!

Just to add another confirmation point on this - I'm a tax preparer and can verify that Form 8960 line 21 (Net Investment Income Tax) should absolutely be reported on Schedule 2, Part II, line 11 with the corresponding checkbox marked. Make sure after you've entered this that you double-check the flow through to your Form 1040. The amount should ultimately be included in the total on line 17 of Form 1040 ("Amount from Schedule 2, line 21"). It's a common area where self-preparers make mistakes. Also worth noting - if you're e-filing, most tax software will handle this transfer automatically once you complete Form 8960. But it's still good to understand the form flow so you can verify everything's correct.

Has anyone here actually had to pay this Net Investment Income Tax before? I just realized I might need to file this Form 8960 this year because of some stock I sold. Is it a big red flag for audits or anything?

One thing nobody mentioned that's worth noting - if you're using tax software and it's not automatically calculating Form 8960 for you, you might need to upgrade to a premium version. Many of the free or basic versions don't support this form because it's considered "advanced." I learned this the hard way last year with [software name] and had to upgrade mid-preparation when I realized I needed Form 8960. Just something to be aware of if you're trying to DIY and getting stuck.