What does the box 12 codes on Form W-2 mean?
5.1k views | Last modified 5/27/2020 10:35:36 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

Box 12 in Form W-2 is to indicate the compensation and benefits offered to an employee. This box will report both single letter and double letter codes along with the corresponding dollar amount. 

Here are the list of box 12 codes: 

A - Uncollected social security or RRTA tax on tips.

B - Uncollected Medicare tax on tips.

C - Taxable cost of group-term insurance over $50,000 (included in box 1, 3 and, 5)

D - Elective deferrals to a section 401(k) cash (includes deferrals under a SIMPLE retirement account that is part of the 401(k) arrangement)

E - Elective deferrals to your 403(b) plan.

F - Elective deferrals under a section 408(k)(6) plan.

G - Elective deferrals and employer contributions to a section 457(b) deferred compensation plan.      

H - Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan. 

J -  Nontaxable sick pay

K - 20% excise tax on excess golden parachute payments

L - Substantiated employee business expense reimbursements (Nontaxable)   

M - Uncollected social security or RRTA tax on taxable cost of group-term life insurance over $50,000 (applicable only to former employees).       

N - Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (applicable only to former employees).

P - Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces (this is not included in box 1, 3, or 5)    

Q - Nontaxable combat pay. 

R - Employer contributions for Archer MSA.

S - Employee contributions under a section 408(p) SIMPLE plan

T - Adoption benefits provided by the employer.

V - Income from the exercise of nonstatutory stock option(s) (included in boxes 1, 3, and 5). 

W - Employer contributions (including amounts the employee elected to contribute using a section 125 plan) to employee’s health savings account. 

Y - Deferrals under the section 409A nonqualified deferred compensation plan 

Z—Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. This amount is included in box 1 and subjected to an additional 20% tax plus interest.                        

AA - Designated Roth contribution(s) under a section 401(k) plan.

BB - Designated Roth contribution(s) under a section 403(b) plan.

DD - Cost of employer-sponsored health coverage. Note that the amount reported with Code DD is not taxable.

EE - Designated Roth contributions under a governmental section 457(b) plan. This amount does not apply to contributions under section 457(b) of a tax-exempt organization 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). 

Refer to Know your Payer Type in Form W-2 to choose the payer type that is applicable to you.

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