Understanding Form W-2 Box 12 Codes

What are W-2 Box 12 Codes?

Form W-2 Box 12 Codes are alphabetic codes used to identify specific types of compensation, benefits, or deductions that are reported in Box 12 of Form W-2. They help the IRS and employees understand what the reported amounts represent.

The IRS allows you to enter multiple codes on Box 12 of Form W-2 for each employee. Each code corresponds to a different compensation, deduction, or benefit type.

Quick Note: If you need to report more than four codes in box 12, an additional Form W-2 is required.

Instructions to Complete Box 12 Codes on W-2

Form W-2 Box 12 contains 30 different codes ranging from “A to II” to report certain compensation, taxes, contributions, and benefits.

• W2 Box 12 Codes	Description
  Code A	Enter the code "A" to show the uncollected social security or RRTA (Railroad Retirement Tax Act) tax on tips. Do not include this amount in box 4.
  Code B	Enter the code "B" to show the uncollected Medicare tax on tips. Do not show any uncollected Additional Medicare Tax. Do not include this amount in box 6.
  Code C	Taxable cost of group-term life insurance over $50,000
  Code D	Enter the code "D" to show the elective deferrals under a section 401(k) cash or deferred arrangement (plan).
  Code E	Enter the code "E" to show the elective deferrals under section 403(b) salary reduction agreement.
  Code F	Enter the code "F" to show the elective deferrals under section 408(k) (6) salary reduction Simplified Employee Pension plan (SEP).
  Code G	Enter the code "G" to show the elective deferrals and employer contributions (including non-elective deferrals) to any governmental or nongovernmental section 457(b) deferred compensation plan.
  Code H	Enter the code "H" to show the elective deferrals under section 501(c) (18)(D) tax-exempt organization plan.
  Code J	Enter the code “J” to show the non-taxable sick pay.
  Code K	Enter the code “K” to show the 20% excise tax on excess golden parachute payments.
  Code L	Substantiated employee business expense reimbursements.
  Code M	Enter the code "M" to show the uncollected social security or RRTA tax on the taxable cost of group-term life insurance over $50,000 (for former employees).
  Code N	Enter the code "N" to show the uncollected Medicare tax on the taxable cost of group-term life insurance over $50,000 (for former employees).
  Code P	Enter the code “P” to show the excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces.
  Code Q	Nontaxable combat pay (only for military personnel).
  Code R	Enter the code “R” to show the employer contributions to an Archer MSA.
  Code S	Enter the code “S” to show the employee salary reduction contributions under a section 408(p) SIMPLE plan.
  Code T	Enter the code “T” to show the adoption benefits.
  Code V	Enter the code “V” to show the Income from the nonstatutory stock option(s) exercise. Include this amount in boxes 1, 3 (up to the social security wage base), and 5.
  Code W	Enter the code “W” to show the Employer contributions to a health savings account (HSA).
  Code Y	Enter the code “Y” to show the deferrals under section 409A on a nonqualified deferred compensation plan.
  Code Z	Enter the code “Z” to show the income under a nonqualified deferred compensation plan that fails to satisfy section 409A.
  Code AA	Enter the code "AA" to show the designated Roth contributions under a section 401(k) plan.
  Code BB	Enter the code "BB" to show the Designated Roth contributions under a section 403(b) plan.
  Code DD	Enter the code "DD" to show the cost of employer-sponsored health coverage.
  Code EE	Enter the code “EE” to show the designated Roth contributions under a governmental section 457(b) plan.
  Code FF	Enter the code “FF” to show the permitted benefits under a qualified small employer health reimbursement arrangement(QSEHRA). The maximum reimbursement for an eligible employee for 2024 is $6,150 and $12,450 for families.
  Code GG	Enter the code “GG” to show the Income from qualified equity grants under section 83(i).
  Code HH	Enter the code “HH” to show the aggregate deferrals under section 83(i) elections as of the close of the calendar year.
  Code II	Enter the code "II" to display the amount of Medicaid waiver payments excluded from gross income under Notice 2014-7.

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