Imputed Income

What is imputed income?

Imputed income refers to the value of a non-cash benefit or service provided by an employer or other entity that is treated as income for tax purposes. It typically includes fringe benefits such as employer-paid life insurance above a certain threshold, personal use of a company car, or housing provided by an employer. Imputed income is added to an employee’s taxable income and is subject to income tax and often Social Security and Medicare taxes.