What Does Box 12 Code C Mean on a W-2?
Group-term life insurance over $50,000 — what it means, whether it's taxable, and what to do with it.
By the Easy Guides Editorial Team · Updated for 2026
Code C in Box 12 of your W-2 means group-term life insurance over $50,000. Tax treatment: Already taxed.
What Code C means
Employers must add the value of coverage over $50,000 to your income. You don't do anything extra with Code C at tax time.
Does Code C affect my taxes?
The cost of employer-provided group-term life insurance above $50,000 is a taxable fringe benefit. It's already included in your taxable wages (Boxes 1, 3, and 5), so Code C is just showing you how much came from this benefit.
Where to find Code C on your W-2
Box 12 has up to four slots — labeled 12a, 12b, 12c, and 12d. Each slot shows a letter code and a dollar amount. The 12a–12d labels are just line numbers; the actual code is the small letter next to the money. So "12a: C 5,000" means Code C with a $5,000 amount. When you file, enter the code and amount exactly as shown.