Imputed Income Life Insurance at Life

Imputed Income Life Insurance. You are taxed based on the value of the benefit (not the benefit itself). A lot of fringe benefits are taxed depending on the value received by the employee.

Group term life insurance with coverage in excess of $50,000 death benefit The imputed income occurs when individuals with more than $50,000 of life coverage volume insurance. Imputed income is the recognition of a benefit received but not paid for by the recipient.

Are You Paying Too Much For Your Group Term Life Insurance

If an employee’s basic life plan volume is greater than $50,000, the irs calculates imputed income for the value of the premium paid by the employer for the excess coverage, and add this amount to the. The imputed income creates a taxable income for employees that must be reported on a. Jane will pay $43.20 per year in imputed income based on the following: Estimate the potential taxes applied to group term life, based on your age and amount of insurance in excess of $50,000 with this imputed income calculator.