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Quick answer

Box 12 Code T is adoption benefits.

What Code T means

Adoption assistance your employer provided.

Does Code T affect my taxes?

Not included in box 1, but not automatically tax free either. The exclusion has limits and income phase-outs.

What to do about it

File Form 8839 to work out how much is excludable and whether you also qualify for the adoption credit.

Where to find Code T 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 T. 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.

Frequently asked questions

Adoption benefits. Adoption assistance your employer provided.
Not included in box 1, but not automatically tax free either. The exclusion has limits and income phase-outs.
File Form 8839 to work out how much is excludable and whether you also qualify for the adoption credit.
Box 12 sits in the middle-right of the form, with up to four lines labelled 12a through 12d. Each line has a small letter code and an amount. The letters a through d are just line labels, not codes.