What Does Box 12 Code DD Mean on a W-2?
Cost of employer-sponsored health coverage (informational only — not taxable) — what it means, whether it's taxable, and what to do with it.
By the Easy Guides Editorial Team · Updated for 2026
Code DD in Box 12 of your W-2 means cost of employer-sponsored health coverage (informational only — not taxable). Tax treatment: Not taxable — informational.
What Code DD means
The ACA added Code DD purely for transparency, so you can see the full cost of your health plan. When you file, you can ignore it entirely.
Does Code DD affect my taxes?
The total cost of your employer-sponsored health coverage — your share plus the employer's. It is NOT taxable and does NOT go anywhere on your tax return.
Where to find Code DD 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: DD 5,000" means Code DD with a $5,000 amount. When you file, enter the code and amount exactly as shown.