What is imputed income and will it apply to my coverage?
Imputed income is a term describing taxable income on the value of premiums on employer-provided life insurance coverage in excess of $50,000. The cost of life insurance over $50,000 for the employee and the spouse will require calculation of imputed income and, as such, is subject to federal and state income tax. Employees should be aware of this possibility even though the resulting tax liability is small. The local Internal Revenue Service office or a personal tax advisor can provide additional details.
