Imputed Income

[Jays03595]

Hello, 

I have added my domestic partner to my benefits. There is money added (145) to my income and then “imputed” under the benefits section of my paystub. I don’t understand this process. 

Will this affect my salary? How will this work on my taxes? 

Can you explain imputed income for benefits. We do our taxes separately, not married. 

[BettieG]

In your situation, it appears that you’ve added your domestic partner to your employer-provided benefits so that your domestic partner can take advantage of a work-related benefit provided by your employer.  Imputed income reflects the fair market value of the additional benefit coverage for your domestic partner. 

Under IRS regulations, that amount (the value of the benefit) is generally treated as taxable income to you, the employee.  As such, it is subject to both federal and FICA taxes, and will be included in your W-2 for the tax year, and a part of your tax return, I’m sorry to say.

I hope this helps.