Question

If I have an amount on my W-2 Box 12, what is it and is it added to my income?

Answer

If you have an amount listed on your W-2 Box 12, it could be one of several things. The W-2 Box 12 codes provide more information and determine if the amount is income.

However, if any amount is gross income, it’s already included in W-2 Box 1. Each W2 Form box 12 code is either a single or double letter code.

The W2 Box 12 codes are:

  • A — Uncollected Social Security or RRTA tax on tips. Include this tax on Form 1040 Schedule 4 line 58.
  • B — Uncollected Medicare tax on tips. Include this tax on Form 1040 Schedule 4 line 58.
  • C — Taxable costs of group-term life insurance over $50,000 (included in W-2 boxes 1,3 (up to Social Security wages base), and box 5.
  • D — Elective deferral under a 401(k) cash or arrangement plan. This includes 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 (including non-elective deferrals) 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, not included in W-2 boxes 1, 3, or 5).
  • 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 (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 paid directly to a member of the U.S. Armed Forces. (not included in Boxes 1, 3, or 5)
  • Q — Nontaxable combat pay. See the instructions for Form 1040 or Form 1040A for details on reporting this amount.
  • R — Employer contributions to your Archer medical savings account (MSA). Report on Form 8853:, Archer MSAs and Long-Term Care Insurance Contracts.
  • S — Employee salary reduction contributions under a Section 408(p) SIMPLE. (Not included in Box 1).
  • T — Adoption benefits (not included in Box 1). Complete Form 8839:, Qualified Adoption Expenses, to compute any taxable and nontaxable amounts.
  • V — Income from exercise of non-statutory stock option(s) (included in Boxes 1, 3 (up to Social Security wage base), and 5). See Publication 525, Taxable and Nontaxable Income, for reporting requirements.
  • W — Employer contributions (including amounts the employee elected to contribute using a Section 125 cafeteria plan) to your health savings account (HSA).
  • Y — Deferrals under a Section 409A nonqualified deferred compensation plan.
  • Z — Income under a nonqualified deferred compensation plan that fails to satisfy Section 409A. This amount is also included in Box 1 and is subject to an additional 20% tax plus interest. See Form 1040 instructions for more information.
  • AA — Designated Roth contribution under a 401(k) plan.
  • BB — Designated Roth contributions under a 403(b) plan.
  • CC — For employer use only.
  • DD — Cost of employer-sponsored health coverage.
  • EE — Designated Roth contributions under a governmental 457(b) plan. This amount doesn’t apply to contributions under a tax-exempt organization 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.

Related Topics

Related Resources

What’s An IRS Tax Transcript?

What is an IRS transcript, and why is it useful? Learn more about the five different kinds of irs transcripts with the tax experts at H&R Block.

IRS Letter 1058 or LT11 – Final Notice of Intent to Levy

Learn more about letter 1058, why you received it, and how to handle an IRS bill for unpaid tax with help from the tax experts at H&R Block.

Statutory Notice of Deficiency

Get the facts from H&R Block about an IRS statutory notice of deficiency, which the IRS sends when you owe taxes because of an underlying tax problem.

IRS Letter 2940C – Personal Identification Number (PIN) Established

The IRS has assigned you a Personal Identification Number (PIN). Learn more about IRS letter 2940C from the tax experts at H&R Block.