What is code DD in box 12 of my W-2? (2024)

FAQs

What is code DD in box 12 of my W-2? ›

Box 12 amounts with the code DD signify the total cost of what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only—they don't affect the numbers in your tax return.

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee's Form W-2, Wage and Tax Statement, in Box 12, using Code DD.

Box 12 is a general catch-all for recording various types of income. Box 12 consists of four sections, 12a-12d. These are just references to organize the space and don't have any significant meaning. W2 Box 12 uses codes A through HH to identify a variety of employee benefits that must be reported to the IRS.

W-2 Box D:

Box D might be blank, depending on whether your business uses control numbers or not. A control number identifies Forms W-2 so you can keep records of them internally. If you don't use control numbers, leave this box blank.

Multiply total cost of health care per month by the number of months the employee was enrolled in the plans for that tax year. Report the total in box 12 on the W-2 form using code DD.

Reporting on the Form W-2

Employers that are subject to this requirement should report the value of the health care coverage in Box 12 of the Form W-2PDF, with Code DD to identify the amount. There is no reporting on the Form W-3 of the total of these amounts for all the employer's employees.

The Notice states that elective deferral contribution amounts to a Roth SEP or Roth SIMPLE IRA are reported on a Form W-2 in Box 12 using code S (for SIMPLE) or code F (for SARSEP) and are included in the amounts shown in Boxes 1, 3, and 5.

Box 1: Wages, Tips, Other Compensation.

The amount in Box 1 will generally be the “YTD Gross” under the Summary section of your final earnings statement, minus any pre-tax deductions such as health/dental/vision insurance, flexible spending accounts and retirement and tax deferred savings plans, etc.

Elective Deferrals are amounts contributed to a plan by the employer at the employee's election and which, except to the extent they are designated Roth contributions, are excludable from the employee's gross income. Elective deferrals include deferrals under a 401(k), 403(b), SARSEP and SIMPLE IRA plan.

How do I add third party sick pay to my taxes? ›

Use the Wage Plan Code “R” for Third-Party Sick Pay. You can file online with e-Services for Business (edd.ca.gov/e-Services_for_Business).

In most cases, their federal income tax owed will be less if they take the larger of their itemized deductions or standard deduction.

Code DD is only information to you to tell you how much your employer spend for health coverage - you do nothing with it. Code D is the amount of salary deferrals to a 401(k) plan. You do nothing with than either other than enter it on the W-2 screen in box 12 just like it is on the paper W-2.

A Control Number (box D) is used by many payroll departments to uniquely identify a W-2 in their system. If your W-2 doesn't have one, it's no big deal. If you get errors when attempting to e-file with an empty box D, just enter any number in this format: 5 digits, space, 5 digits (for example, 12345 67890).

Do not worry if box d is blank. It simply means your employer does not use control numbers. Box e & Box f: Your name and address. Your name should reflect what is on your SSN.

In accordance with the Affordable Care Act of 2010, we are reporting the total cost of the employer sponsored health coverage you received during the year in box 12 under code DD. This figure includes both the employee and employer paid shares of health insurance premiums and is for informational purposes only.

Code DD is only information to you to tell you how much your employer spend for health coverage - you do nothing with it. Code D is the amount of salary deferrals to a 401(k) plan. You do nothing with than either other than enter it on the W-2 screen in box 12 just like it is on the paper W-2.

It sounds like Code D and the amount is $21. Code D shows the part of your pay that went toward a 401K. This is informational only. It shows the amount of income that is deferred and is not included in Box 1 of your W2.