Imputed income is the value of the income tax the Internal Revenue Service (IRS) puts on group-term life insurance coverage in excess of $50,000. In other words, when the value of the premiums paid ...

For Basic Life Insurance and AD&D, if the volume of your life insurance exceeds $50,000, you have the option of limiting your coverage [PDF] to $50,000 in order to avoid imputed income. The imputed ...

Employer-sponsored life insurance over $50K is taxed. The IRS considers excess coverage as imputed income. Imputed income appears on your W-2. The taxable portion of employer-provided life ...