Imputed income is the amount of income that has to be declared on a tax return attributable to certain employee benefits (e.g., the benefit of using a company car or gym membership). May not include these benefits in an employee’s actual salary or wages, but they are still taxed as usual.
Taxation of fringe benefits is determined by the value of the benefit received. Some benefits are taxed regardless of the monetary amount. Here are some examples:
The IRS defines imputed income as “income that is assumed to have been earned, whether or not it was earned.” If a taxpayer owns stocks that earn dividends, the dividends are taxable — assuming the taxpayer does not have sufficient records to prove that the income wasn’t made. The same goes for interest income, even if the money is placed in an account and never touched. In these cases, tax authorities consider that the taxpayer has received income from the dividend or interest payments.