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Category: Form W-2 Questions

Form W-2 Box 12 Codes

There are several types of compensation and benefits that can be reported in Box 12 of Form W-2.  Box 12 will report a single letter or double letter code followed by a dollar amount.  The following list explains the codes shown in Box 12 of Form W-2.  You may need this information to complete your tax return.

A
Uncollected social security or RRTA tax on tips.  Include this tax on Form 1040.  See "Other Taxes"  in the Form 1040 Instructions.  TaxSlayer Pro automatically pulls this amount to the Other Taxes section on page 2 of Form 1040 and denotes it with code UT.
B
Uncollected Medicare tax on tips.  Include this tax on Form 1040.  See "Other Taxes" in the Form 1040 instructions.  TaxSlayer Pro automatically pulls this amount to the Other Taxes section on page 2 of Form 1040 and denotes it with code UT.
C
Taxable cost of group-term life insurance over $50,000 (included in boxes 1, 3 (up to social security wage base), and box 5).  This amount is already included in the taxable income of the Form W-2.  It is not reported separately on Form 1040.
D
Elective deferrals to a section 401(k) cash or deferred arrangement.  Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.  TaxSlayer Pro pulls this amount to Form 8880.
E
Nontaxable elective deferrals under a section 403(b) salary reduction agreement.  TaxSlayer Pro pulls this amount to Form 8880.
F
Nontaxable elective deferrals under a section 408(k)(6) salary reduction SEP.  TaxSlayer Pro pulls this amount to Form 8880.
G
Nontaxable elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan.  TaxSlayer Pro pulls this amount to Form 8880.
H
Nontaxable elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan.  See "Adjusted Gross Income" in the Form 1040 instructions for how to deduct.  TaxSlayer Pro pulls this amount to Form 8880.
J
Nontaxable sick pay (information only, not included in Boxes 1, 3, or 5).
K
20% excise tax on excess golden parachute payments.  See "Other Taxes" in the Form 1040 instructions.
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).  See "Other Taxes" in the 1040 Instructions.  TaxSlayer Pro automatically pulls this amount to the OTher Taxes section on page 2 of Form 1040 and denotes it with code UT.
N
Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only).  See "Other Taxes" in the Form 1040 Instructions.  TaxSlayer Pro automatically pulls this amount to the Total Tax line of Form 1040 and denotes it with code UT.
P
Excludable moving expense reimbursements paid directly to employee (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 MSA.  Report on Form 8853.
S
Employee salary reduction contributions under a section 408(p) SIMPLE (not included in box 1).  TaxSlayer Pro pulls this amount to Form 8880.
T
Adoption benefits (not included in box 1).  Complete Form 8839 to compute any taxable and non-taxable amounts.
V
Income from exercise of nonstatutory stock option(s) (included in boxes 1, 3 (up to social security wage base), and box 5).  See Publication 525 and instructions for Schedule D (Form 1040) for reporting requirements.
W
Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria plan)) to a health savings account.  Report on Form 8889.  TaxSlayer Pro pulls this amount to Form 8889.
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.  It is subject to an additional 20% tax plus interest.  See "Other Taxes" in the Form 1040 instructions. TaxSlayer Pro automatically calculates the additional tax in the Other Taxes section on page 2 of Form 1040 and denotes it with code NQDC.
AA
Designated Roth contributions under a section 401(k) plan.  TaxSlayer Pro pulls this amount to Form 8880.
BB
Designated Roth contributions under a section 403(b) plan.  TaxSlayer Pro pulls this amount to Form 8880.
DD
Cost of employer-sponsored health coverage.  The amount reported with Code DD is not taxable.
EE
Designated Roth contributions under a governmental section 457(b) plan.  This amount does not apply to contributions under a tax-exempt organization section 457(b) plan.