Imputed income treatment

[ILLMAS]

TP is receiving imputed income for group medical and life insurance (1099, box 3 other income), and on last year tax return it appears on 21 and SE tax was calculated on the imputed income. I am confused, I have never encounter "other income" to be subject to SE tax before and wanted to see if someone else would know.

Thanks

MAS

[kcjenkins]

That is normally included on the W-2? From Pub 15b:

Exclusion from wages. You can generally exclude the
cost of up to $50,000 of group-term life insurance from the
wages of an insured employee. You can exclude the
same amount from the employee's wages when figuring
social security and Medicare taxes. In addition, you do not
have to withhold federal income tax or pay FUTA tax on
any group-term life insurance you provide to an employee.

Coverage over the limit. You must include in your
employee's wages the cost of group-term life insurance
beyond $50,000 worth of coverage, reduced by the
amount the employee paid toward the insurance. Report it
as wages in boxes 1, 3, and 5 of the employee's Form
W-2. Also, show it in box 12 with code “C.” The amount is
subject to social security and Medicare taxes, and you
may, at your option, withhold federal income tax

Table 2-1. in that Pub is the go-to resource I use.