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

6 Tips to Prevent Fraud and Identity Theft for Your Kids

Worried about your kids and child identity theft? Learn how to prevent child identity theft with 6 tips from Laura Adams, the Money Girl, and H&R Block.

It’s Been A Few Years Since I Filed A Tax Return. Should I Start Filing Again?

If you haven't filed tax returns in awhile, there are things you need to know. Learn how to address back tax returns and what you can expect when you file.

IRS Penalty Nonassertion

Penalty nonassertion means that the IRS not to charge penalties to your tax account. Learn more about how to get relief from IRS penalties from H&R Block.

Manually Monitored Installment Agreement

A manually monitored installment agreement is monitored by the IRS to ensure payments are made as required and all tax returns are filed and paid by the deadline. Learn more from H&R Block.