What Is Imputed Income?

Imputed income is the value of non-cash compensation or benefits that must be included in an employee's taxable income. The most common example is group term life insurance coverage exceeding $50,000 — the premium cost above $50,000 in coverage is added to your taxable wages. You'll see it on your paystub as a "phantom" earning that increases your gross pay but doesn't actually put money in your pocket. Other examples include personal use of a company car and gym membership reimbursements.

Common paystub code: IMPTD / GTL

Where You'll See Imputed Income

Related Terms

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