Imputed Income

The adding of a value to employee compensation to properly withhold taxes from wages. For example, if you cover a domestic partner who is not a legal spouse as defined by the Internal Revenue Service (IRS) on your health benefits, Intuit must calculate the estimated fair market value (FMV) of those health benefits and credit that amount to you as “imputed income.” This amount is then added as part of your taxable income and removed as an after-tax deduction.