What Does Box 12 Code K Mean on a W-2?
Excise tax on excess golden parachute payments. 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 K is excise tax on excess golden parachute payments.
What Code K means
A 20% excise tax on excess golden parachute payments, which are large payouts tied to a change in company control.
Does Code K affect my taxes?
This is a tax already charged on those payments. It is rare and generally applies to senior executives.
What to do about it
Report it as directed in the Form 1040 instructions. If you have a Code K amount, the payment behind it is usually large enough that professional advice is worth it.
Where to find Code K 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 K. 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.