Entering Box 12 information on your W-2

What is a W-2 Form?

Form W-2 is a wage and tax statement that details how much you were paid by an employer during the year. If you have (or had) a job at any time during the year, you should receive a W-2 Form from each employer the following January. The information contained in box 12 may need to be reported or adjusted on your tax return.

What is Box 12 on the W-2?

Box 12 is a general “catch-all” for miscellaneous items.

Box 12 has four sections: 12a, 12b, 12c, and 12d. Each subsection references the space and is still part of Box 12.

Within the box, there will be a code to identify the miscellaneous items that might need to be reported to the IRS on your income tax return. The codes start at A and go through HH. Some of these represent taxable amounts that are also included in your wages and elsewhere on the W-2, while others are just for informational purposes for the IRS.

In some cases, the code and amount in Box 12 requires an additional tax or income be reported on the tax return.

But if you ignore the information within Box 12, get it wrong, or use it incorrectly, it could cause you trouble later when your tax return is processed by the IRS. Accuracy is important.

What are the most common codes used for Box 12?

There are nearly 30 codes that can be put into Box 12 on the W-2 Form. The most common ones are:

• A: represents uncollected social security or railroad retirement income not collected and must be reported on the tax return.
• B: represents uncollected Medicare taxes and must be reported on the tax return.
• C: represents the taxable portion of group-term life insurance. This is already included in the wages in boxes 1, 3 and 5 of the W-2.
• D: represents 401(k) contributions and are elective deferrals to a 401(k) cash or deferred arrangement, including SIMPLE 401(k)s
• E: represents 403(b) contributions and are elective deferrals made under a 403(b)-salary reduction agreement
• F: represents 408(k)(6) contributions and are elective deferrals made under a SARSEP
• G: represents 457(b) contributions and are elective and nonelective deferrals made to a 457(b) deferred-compensation plan
• H: represents 501(c)(18)(D) contributions and are elective deferrals to a Section 501(c)(18)(D) tax-exempt organization plan (Included in the "Wages, Tips, Comp." amount in Box 1)
• S: represents 408(p) SIMPLE contributions and are deferrals made under a SIMPLE IRA plan
• AA: represents Roth IRA contributions and are for designated Roth contributions under a 401(k) plan
• BB: represents Roth IRA contributions and are for designated Roth contributions under a 403(b) plan
• DD: represents the amount your employer paid for health insurance. This is not taxable
• EE: represents Roth IRA contributions and are designated Roth contributions under a governmental 457(b) plan (a tax-exempt organization's 457(b) can't have a designated Roth account)

While there are nearly 30 codes available, don’t stress out. The IRS clearly lists and explains what each one is for. You and your Jackson Hewitt Tax Pro will work through it during your appointment.

Where is Box 12 on a W-2 Form?

Box 12 is on the right side of the W-2 and has four areas that could include a number and code.

What happens if Box 12 is empty on W-2?

If your Box 12 lines are blank when you receive your W-2, and you know you don’t have any items related to these codes, it’s okay. Move on to Box 13.

If you believe your W-2 is incorrect, you need to contact your employer for help correcting it.

How do the codes and numbers in Box 12 impact your tax return?

Box 12 is just another area that includes what your taxable income is from your employer but isn’t necessarily your wages or what was withheld from your paychecks. But these numbers do help in understanding your total income, including the value of benefits from that employer. You might need them for other purposes on your tax return, other reasons related to your finances, or just to know how much you put in a benefit plan like a 401(k).

We have Tax Pros across the country that are experts in federal, state, and local tax laws so you don’t have to go it alone if you feel overwhelmed and they will help you file your tax returns. Find an office near you and work with a Tax Pro today.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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