What does the information in box 12 of Form W-2 mean?
Quick Answer
The information provided in box 12 of a W-2 is the value of employer-sponsored health care coverage costs, explains the Internal Revenue Service. Under Code DD, employers are required to report certain health coverage contributions and employee contributions if applicable.
Continue ReadingFull Answer
In box 12, under code DD, an employer must report health coverage costs of major medical, health flexible spending accounts, domestic partner coverage, and hospital indemnity or specified illness coverage, states the IRS. It is optional to report other employer-sponsored health coverage costs, unless the employer charges a COBRA premium. In that case, the employer is also required to report employee assistance plan, on-site medical clinics and wellness programs costs.
The employer's contribution to health coverage costs is not taxable, and it is excluded from the employee's income, reports the IRS. Businesses, nonprofit organizations, government entities and any other employers that provide coverage under a group health plan are required to report.
While a DD code is the most common, other codes are possible and include capital letters A through Z, AA, BB, CC and EE, as Intuit TurboTax indicates. For example, if a J is placed in box 12, it means the employee received non-taxable sick pay. Codes D through G, S and H provide information on any contributions made to the employee's retirement plan. Codes AA and BB are designated Roth contributions under a section 401(k) plan and a section 403(b) plan, respectively.
Learn more about TaxesRelated Questions
-
Q:
How do you fill out a W2?
A: To fill out a W-2 form, start with the company and employee's basic information. Calculate wages, tips and other income, then fill in allotted boxes for ta... Full Answer >Filed Under: -
Q:
What should I do if my employer doesn't send me my W-2?
A: Forbes advices employees who do not receive a W-2 to contact their employer. The law requires employers to provide employees with copies of the form by the... Full Answer >Filed Under: -
Q:
What are the instructions for filling out box 14 on a W-2?
A: As of 2015, employers use Box 14 on a W-2 to report 100 percent of a vehicle's annual lease value in the employee's income and to provide any other informa... Full Answer >Filed Under: -
Q:
How do you get a past year's W2 form?
A: The IRS offers copies of prior year Forms W-2 on request. The submitted copy is not retained by the IRS, but the information is available for the previous ... Full Answer >Filed Under:
You May Also Like
-
Q:
What is a homestead tax reduction?
-
Q:
What type of information does Alex Jones' Prison Planet website offer?
-
Q:
Where can one find more information about the past and present Baltimore Ravens rosters?
-
Q:
What are the most common income tax deductions in 2014?
-
Q:
What information do you need to apply for a Direct Merchants Bank credit card?
-
Q:
How can I find information on real estate in Trulia?
