We were really excited to get company sponsored benefits this year, until I noticed an imputed income entry on my paycheck. Much googling commenced, and now I feel like it's going to bite me in the rear cometh the taxman for 2022. It's significant enough to potentially cause many thousands of tax owed, as I didn't see any change to federal withholding on my last check (next one coming in several days). Soc Sec and Medicare (and State) did go up, as did my taxable gross. I've sent them an email on this and eagerly anticipating their response. Not sure why they wouldn't withhold the fed tax.
I just wanted to double-check, that imputed income counts towards the overall gross, and that all usual suspects (including federal) is owed on that. Any strategies to help offset it? Contribute more to 401k? lol
Thanks!
You can increase your withholding (W-4 line 4c) and/or put more in the 401K and/or get married soon.
You will only see this amount on the W-2 at the end of the year and not on your paychecks during the year but think of it this way ... would you rather pay the tax on the cost of insurance or the actual insurance in full ???
If my paycheck to be trusted, this could be worth $1200/mo of "extra income" I don't need lol Pretty sure we could find insurance for less than that privately. I'll need to see what my next paycheck has on it. I just expected the fed withholding to increase as my wages are "increasing", but it didn't budge on the last paycheck.
1200 x 12 = 14400 insurance cost x your tax rate (say 20%) = 2880 actual cost for insurance ... good luck finding anything worthwhile for that amount.