What Does Box 12 Code J Mean on a W-2?
Nontaxable sick pay. 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 J is nontaxable sick pay.
What Code J means
Sick pay you received from a third party, such as an insurance company, that is not taxable to you.
Does Code J affect my taxes?
It is not included in boxes 1, 3, or 5, so you are not taxed on it. It appears so the payment is documented.
What to do about it
Nothing. You do not report it as income.
Where to find Code J 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 J. 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.