Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro
If you work for an employer, whether you earn a salary or are paid hourly, your income will generally be reported on Form W-2. This form has basic information used to report your income and taxes withheld on both your federal and state tax returns.
There is other important information on a W-2 as well. We’ll focus on Box 12, which is commonly used to report information that may impact your tax return. The codes in all boxes are designated by CAPITAL letters. You may have more than one code in box 12. Your employer may use up to four boxes labeled 12a, 12b, 12c and 12d. Be sure to avoid accidentally entering the Code for box 12a as an “A”. The “a” part of 12 is just a label and a code of A will create an error on your tax return and potentially overstate the amount of tax due. For example, if you see a capital D, next to box 12a, select code D, which will correctly designate the amount as an “Elective deferral to a 401(k).”
W-2 Box 12 codes
These are the codes for W-2 box 12, along with a description.
A - Uncollected social security or RRTA tax on tips. You'll have an amount here if you had tips and your employer didn't withhold social security tax on the tips.
B - Uncollected Medicare tax on tips. You'll have an amount here if you had tips and your employer didn't withhold Medicare tax on the tips.
C - Taxable cost of group-term life insurance over $50,000--included in boxes 1, 3 (up to social security wage base), and 5. The amount here is for your information only.
D - Elective deferrals under a section 401(k) cash or deferred retirement plan. Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) plan.
E - Elective deferrals under a section 403(b) retirement plan
F - Elective deferrals under a section 408(k)(6) SEP retirement plan
G - Elective deferrals and employer contributions (including non-elective deferrals) to a section 457(b) deferred compensation retirement plan
H - Elective deferrals to a section 501(c)(18)(D) tax-exempt organization retirement plan
J - Nontaxable sick pay (information only, not included in boxes 1, 3, or 5)
K - 20% excise tax on excess golden parachute payments
L - Employee business expense reimbursements (nontaxable and not included in Box 1). You can't deduct any of the expenses related to this reimbursement.
M - Uncollected social security or RRTA tax on taxable cost of group term life insurance over $50,000 (former employees only)
N - Uncollected Medicare tax on taxable cost of group term life insurance over $50,000 (former employees only)
P - Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces (not included in boxes 1, 3, or 5). This amount may need to be entered later in the section for Military Moving Expenses
Q - Nontaxable combat pay. This amount is nontaxable income, but it can be included in earned income for the earned income credit.
R - Employer contributions to your Archer MSA
S - Employee salary reduction contributions under a section 408(p) SIMPLE retirement plan (not included in box 1)
T - Adoption benefits (not included in box 1) (You must complete Form 8839, Qualified Adoption Expenses, to compute any taxable and nontaxable amounts.)
V - Income from exercise of non-statutory stock option(s)--included in boxes 1, 3 (up to social security wage base), and 5. You may need this amount to help you calculate the basis of stock sold from the exercise of your non-statutory stock options.
W - Employer contributions (including amounts the employee elected to contribute with a cafeteria plan) to your Health Savings Account (Report on Form 8889, Health Savings Accounts (HSAs).
Y - Deferrals under a section 409A non-qualified deferred compensation retirement plan.
Z - Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. (This amount is also included in box 1. It is subject to an additional 20% tax plus interest.)
AA - Designated Roth contributions to a section 401(k) retirement plan
BB - Designated Roth contributions under a section 403(b) salary reduction agreement retirement plan
DD - Cost of employer-sponsored health coverage. This amount is nontaxable, and it is not deductible as an itemized deduction
EE - Designated Roth contributions under a governmental section 457(b) plan
FF - Permitted benefits under a qualified small employer health reimbursement arrangement
GG - Income from qualified equity grants under section 83(i)
HH - Aggregate deferrals under section 83(i) elections as of the close of the calendar year
II - Medicaid waiver payments excluded from gross income under Notice 2014-7
If you need more help with box 12
If you still need more help, you may start a discussion or ask a question in our Community. For more information from the IRS see the General Instruction for Form W-2.
