How do I calculate the amount I pay for imputed income?
I have to pay tax on my health insurance now that I’m divorced. My paystub shows the amount I pay for my coverage each pay check. It’s taken out pre-tax but then below that they add the amount back to my income. I’ve read about what imputed income is and my employer doesn’t charge me a percentage of the health insurance cost, they add the entire amount back so I’m taxed on the full amount. How can I figure out how much this costs me monthly?
Your employer has already done the math and you don't have to do anything. It's already included in box 1 of your W-2. Do note that since it's for health insurance, the insurance costs can be included as a medical expense for inclusion on SCH A. Of course, until the total of all of your medical expenses exceed 2% of your AGI, they won't make any difference to your tax liability.