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:
How Can You Get a Copy of Your W-2 Form?
A: You can get a copy of your W-2 form through the Internal Revenue Service by submitting IRS Form 4506, Request for Copy of Tax Return, explains the IRS. The... Full Answer >Filed Under: -
Q:
Are There Tutorials Online for Filling Out a W-2?
A: Online tutorials are available for filling out a W-2. Intuit offers an interactive infographic that explains how to fill out each box on a W-2 form. There ... 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:
You May Also Like
-
Q:
How Do You Pay Installment Tax Payments to the IRS?
-
Q:
How Do You Make a 1099 for Contract Workers?
-
Q:
What Kind of Information Is Found on an Alabama Football Schedule?
-
Q:
What Is Some General Information About Delinquent Taxes in Wayne County?
-
Q:
Where Can You Find Information on How to Support a Family Member With Stage 4 Cancer?
-
Q:
What Is the Required Information for Filling Out a Medicaid Renewal Application?
