Navigating the intricate details of your W-2 form can be like deciphering a financial code, especially when it comes to Box 12. This section, adorned with single or double-letter codes, holds the key to understanding the various types of compensation and benefits you’ve received throughout the year.
In this comprehensive guide, we will delve into the meanings of each code, shedding light on the complexities of Box 12.
Whether you’re trying to make sense of your retirement savings contributions, health benefits, or specialized tax considerations, this blog will serve as your compass in decoding the intricacies of your financial landscape.
Form W-2 Reference Guide for Box 12 Codes
Let’s embark on a journey to demystify Box 12 and gain a deeper understanding of your overall compensation.
| Box 12 Code | Meaning |
|---|---|
| A | Uncollected Social Security or RRTA tax on tips |
| B | Uncollected Medicare tax on tips (excluding Additional Medicare Tax) |
| C | Taxable cost of group-term life insurance over $50,000 (included in boxes 1, 3, and 5) |
| D | Elective deferrals to a section 401(k) plan, including a SIMPLE 401(k) arrangement |
| E | Elective deferrals under a section 403(b) salary reduction agreement |
| F | Elective deferrals under a section 408(k)(6) salary reduction SEP |
| 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 (information only) |
| K | 20% excise tax on excess golden parachute payments |
| L | Substantiated employee business expense reimbursements |
| 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 for military orders |
| Q | Nontaxable combat pay |
| R | Employer contributions to an Archer MSA |
| S | Employee salary reduction contributions under a section 408(p) SIMPLE plan |
| T | Adoption benefits |
| V | Income from the exercise of non-statutory stock option(s) |
| W | Employer contributions (including employee contributions through a cafeteria plan) to an employee’s health savings account (HSA) |
| Y | Deferrals under a section 409A non-qualified deferred compensation plan |
| Z | Income under a non-qualified deferred compensation plan that fails to satisfy section 409A |
| AA | Designated Roth contributions under a section 401(k) plan |
| BB | Designated Roth contributions under a section 403(b) plan |
| DD | Cost of employer-sponsored health coverage |
| 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 |
Box 12 of your W-2 holds valuable information about the diverse elements that contribute to your total compensation. Knowing the meanings behind these codes empowers you to make informed decisions about your finances.
If you have any questions or need further clarification, consult with a tax professional for personalized guidance.
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