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 is taxable, and what to do with it.
By the Easy Guides Editorial Team · Updated for 2026
Box 12 Code DD is cost of employer-sponsored health coverage (informational only, not taxable).
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
Look at box 12, in the middle-right of the form. It has up to four lines, labelled 12a, 12b, 12c and 12d. Those letters are only line labels. The code you want is the small letter or pair of letters printed next to the amount, and it will read DD. If you have more than four entries, your employer issues a second W-2 to carry the rest.
Not the code you were looking for? The full box 12 code list covers every letter, and the W-2 box decoder explains every box on the form.