What does imputed income refer to?

Imputed income refers to income that is not actually received in cash or payment but is nonetheless deemed to be income. This concept is often applied in situations where benefits are provided that may not have a direct monetary exchange but still bear economic value.

In the context of non-marketplace income such as self-performed services, the value of these services can be considered imputed income. For example, if a person spends time and resources to perform a service for themselves rather than hiring someone else, the value of that service can be counted as income for tax purposes. This reflects the economic benefit derived from the actions taken, even if no cash changes hands.

Other options refer to various forms of income that are clearly realized through transactions or direct exchanges, such as income from investments, marketplace sales, or business activities. However, imputed income specifically addresses the valuation of services or benefits received that do not involve a direct income exchange, making the reference to self-performed services the most appropriate definition in this case.