What is the imputed income for? Is it for group-term life insurance over $50,000? Exactly how is the imputed income shown on your W-2? The code UT on Schedule 2 line 8c implies that there's an amount in box 12 of the W-2 with code M or N (or both). If so, the problem is that the W-2 is incorrect. Codes M and N are not supposed to be used for a current employee. They are only used for a W-2 issued to a former employee who still has life insurance coverage. The code M and N amounts are the Social Security and Medicare taxes on the imputed income. For a current employee, those taxes should be included in boxes 4 and 6 on the W-2.
Code M or N in box 12 of the W-2 requires Schedule 2 in your tax return. But if the W-2 was filled out correctly, box 12 would not have code M or N, and you would not need Schedule 2. So if the imputed income is for group-term life insurance while you were still employed by the company, the solution is to get your employer to fill out the W-2 correctly, without code M or N in box 12. Tell them to read the topic "Group-term life insurance" in the IRS instructions for Form W-2.
If the imputed income is for something else, and you don't have code M or N in box 12 of your W-2, tell us what the imputed income is for, what codes and amounts are in box 12 of your W-2, which boxes are checked on Schedule 2 line 8c on your 2020 tax return, and what codes are on the dotted line on line 8c.
