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University Controller’s Office

Imputed Income

Certain fringe benefits paid by the employer are taxable to the employee and is refered to as imputed income for federal tax purposes.

Imputed Income

Internal Revenue Code section 79 provides an exclusion for the first $50,000 of group-term life insurance coverage provided under a policy carried directly or indirectly by an employer.

Only employees that purchase NC Flex Life Insurance will have imputed income included in their taxable income.

If the total value of your TSERS death benefit – your gross salary not to exceed $50,000 – plus the value of purchased NC Flex Life Insurance exceeds $50,000, you will have imputed income.