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What is Box 12?

Box 12 on your W-2 reports specific items that don't fit in the other boxes, retirement contributions, health insurance costs, HSA contributions, and other employee benefits. Each item has a letter or two-letter code that identifies what it is.

You may see anywhere from zero to four Box 12 entries (labeled 12a, 12b, 12c, 12d on the form). Each one has its own code and dollar amount.

The four codes most people will see

If you have any Box 12 entries at all, they're most likely one of these:

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Code DCOMMON

401(k) contribution (traditional, pre-tax)

Code AACOMMON

Roth 401(k) contribution (after-tax)

Code DDCOMMON

Cost of employer-sponsored health coverage (informational only, not taxable)

Code WCOMMON

HSA contributions (employer + employee pre-tax through payroll)

All Box 12 codes

The complete list of codes that may appear in Box 12:

CodeWhat it means
AUncollected Social Security tax on tips
BUncollected Medicare tax on tips
CGroup-term life insurance over $50,000
D401(k) contribution (traditional, pre-tax)
E403(b) contribution (typically nonprofits, schools)
F408(k)(6) contribution
G457(b) contribution (typically government employees)
H501(c)(18)(D) contribution
AARoth 401(k) contribution (after-tax)
BBRoth 403(b) contribution (after-tax)
DDCost of employer-sponsored health coverage (informational only, not taxable)
EERoth 457(b) contribution
WHSA contributions (employer + employee pre-tax through payroll)
FFQSEHRA permitted benefit
GGIncome from qualified equity grants under Section 83(i)
TAEmployer contributions to a Trump account (new for 2026)
TPCash tips you reported to your employer (new for 2026)
TTQualified overtime compensation (new for 2026)
JNontaxable sick pay
KExcise tax on excess golden parachute payments
LSubstantiated employee business expense reimbursements
MUncollected Social Security tax on group-term life insurance
NUncollected Medicare tax on group-term life insurance
PExcludable moving expense reimbursements for armed forces
QNontaxable combat pay
REmployer contributions to an Archer MSA
SSIMPLE plan salary reduction contributions
TAdoption benefits
VIncome from exercising nonstatutory stock options
YDeferrals under a 409A nonqualified deferred compensation plan
ZIncome from a nonqualified plan that fails 409A
HHAggregate deferrals under section 83(i) elections

The most important code: DD

Code DD reports the cost of your employer-sponsored health coverage, both your portion and the employer's portion. This is informational only. It is NOT taxable income, and you do not owe any tax on this amount. Some people see a large number here and panic. Don't. Box 12 code DD is disclosure required by the Affordable Care Act, and the amount is not included in the wages reported in Box 1 of your Form W-2, so it is not taxed at all.

Box 12 and your tax return

Most Box 12 codes don't require any action when filing, they're already factored into Box 1 (your taxable wages). However, certain codes may unlock tax benefits or trigger reporting requirements:

  • Code W, HSA contributions through payroll. May allow additional HSA deduction beyond what's already excluded.
  • Code D, AA, Retirement contributions. May affect your Saver's Credit eligibility.
  • Code DD, Informational only, no tax impact.

Common questions

What do the box 12 codes on a W-2 mean?

Each letter flags a specific benefit or contribution. Code D is your traditional 401(k), DD is what your employer paid for health coverage, W is HSA contributions, and C is group term life insurance over $50,000.

Does code DD mean I owe tax on my health insurance?

No. Code DD is reporting only. It shows the total cost of employer health coverage so you can see the value, and it does not change your taxable income at all.

What does code W mean on a W-2?

Code W shows the total that went into your health savings account, both your contributions and your employer's. You report it on Form 8889 with your return.

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