Taxes can intrigue you, or the least to say, dealing with different tax forms can be overwhelming. If you are an employee and looking for credible information on the W2 Box 12 and the W2 Box 12 codes, you are at the right place. If you’re wondering what is box 12 on a w2, then read on to know what does box 12 on w2 mean?
The W-2 is the annual ‘Wage and Tax Statement’ in which your taxable income from your employers and the IRS is mentioned. The W-2 boxes and codes represent the wages earned and the tax paid through withholding. The Form also includes the Social Security and Medicare payments made by you and as well as your employer.
These taxes, which are withheld from your salary, are submitted to the Federal and Tax state authorities. There are several boxes in the Form, and each box denotes a specific part of your earnings and withholding.
Let’s understand the w2 Box 12 codes in detail. The box 12 w2 includes the following codes. You will need the w2 box 12 instructions to file your tax return. Read on to know about the w-2 box 12 codes.
Code |
Explanation |
| A | It represents the uncollected Social Security tax or Railroad Retirement Tax Act (RRTA) tax on tips. You have to include this amount in your total tax liability on Schedule 2, which you will file with your Form 1040. |
| B | It denotes any uncollected amount on Medicare tax on tips. The amount is included in the total tax liability on Schedule 2. |
| C | The Code denotes the group term life insurance through your workplace. The premiums over $50,000 value are taxable income to you. The same is included in the taxable wages shown in boxes 1 and 3 and box 5. |
| D | This box includes the Contributions to a 401(k) or SIMPLE 401(k) retirement plan. |
| E | The w2 box 12 codes E indicates the contributions made to a 403(b) retirement plan. |
| F | The Code includes the contributions to a SEP-IRA retirement plan. |
| G | This Code gives you information about the Contributions you and your employer made to a 457(b) retirement plan. |
| H | The H code offers information about the contributions made to a 501(c) tax-exempt plan. |
| J | The Code refers to the Non-taxable sick pay. However, it is for informational purposes only. It does not impact your taxable income. |
| K | The Code offers information about the 20% excise tax on excess “golden parachute” payments. |
| L | The Code means reimbursements for employee business expenses. The expenses are not taxable. |
| M | The code M in the W2 Form refers to the uncollected Social Security tax, or RRTA tax levied on the premium value of taxable group-term life insurance over $50,000 (for former employees). |
| N | Code N refers to the Uncollected Medicare tax on the taxable cost of group-term life insurance over $50,000. It applies to former employees only. |
| P | Reimbursements for job relocation moving expenses which are paid directly to a member of the U.S. Armed Forces. The amount is not included in boxes 1, 3, or 5. |
| Q | Q-The Q code refers to the Non-taxable combat pay. You can use the w2 box 12 instructions for Form 1040 or 1040 A for details for reporting this amount. |
| R | This Code refers to the Employer contributions to your Archer medical savings account (MSA). Today, instead of MSA, people use a health savings account (HSA). But if you have an MSA, you need to report on Form 8853. |
| S | The Code provides information about the Employee contributions under section 408 (P) made to a SIMPLE retirement plan. (not included on Box 1). |
| T | The Code includes the adoption benefits ( not included in Box 1) if paid by your employer to you. You need to use the form 8839 – Qualified Adoption expenses to calculate any taxable and non-taxable amounts. |
| V | The Code refers to the income from exercising non-statutory stock options. For reporting requirements, see Publication 525, Taxable, and Non-taxable Income. |
| W | The W code means the Employer contributions to your HSA. This amount needs to be reported on Form 8889. |
| Y | It refers to the Salary deferrals under a 409A nonqualified deferred compensation plan. |
| Z | Code Z includes the income received under a nonqualified deferred compensation plan that fails to satisfy Section 409A. This amount also consists of the wages reported in Box 1 of Form W-2. |
A.A.- what is code aa in box 12 of w2
The Code A.A. refers to the Designated contributions to a Roth 401(k) retirement plan.
B.B.
The Code B.B. refers to the Designated contributions to a Roth 403(b) retirement plan.
CC
This box code is meant for employer use only.
D.D.
The Code refers to the cost of employer-sponsored health care. This amount is not taxable.
E.E.
The Code implies the Designated Roth contributions to a governmental 457(b) retirement plan.
F.F.
The Code refers to the Permitted benefits under a qualified small employer health reimbursement arrangement.
G.G.
The Code refers to the income from qualified equity grants under section 83(i).
H.H.
The Code refers to the total deferrals under section 83(i) elections as of the calendar year’s closing.
Note:
Please note that most of the employees get less number of codes in Box 12. The most common ones they see are Code D, which includes contributions to a 401(k) plan and Code D.D., which consists of employer-sponsored health care costs.
