What the Form W-2 Box 12 Codes Mean

This plan will include which expenses are covered, how much the employer contributes, the employee contribution limits, and any rules that apply. A simple human or computer error can often be the cause of receiving an incorrect W-2. If handled in a timely fashion by both the employee and employer, the error can be amended and the proper taxpayer information can be delivered to the IRS without fear of penalty. As for a wrong address—maybe you’ve moved since you began working for this employer and you failed to update your information with the company—this is typically an issue that can be solved easily. You can go ahead and submit the W-2 with your tax return as long as your correct and current address is cited on your Form 1040. You’ll want to let your employer know of the change, however.

Keeping up with the new rules will help you avoid errors when you file. This portion of the site is for informational purposes only.

More help with box 12 codes

On the W-2 form, box 12 has a number of sub-categories ranging from A to HH. Long story short, the W-2 box 12 codes provide more information and determine if the amount is income for income tax reporting. However, if any amount is gross income, it’s already included in W-2 Box 1. Each W-2 Form box 12 code is either a single or double letter code.

New employees who begin working within the City of New York on January 1, 2020, or later must fill out the new Form W-4. Current City of New York employees who need to make a change to their Form W-4 on file must also fill out the new Form W-4. Concerning allocated tips or consult with a tax professional if any income shows in Box 8 of your W-2.

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Box 15 reports your employer’s state and state tax identification number. There may be multiple lines of information here if you worked for the same employer in multiple states. As the amount is already reported in box 1 , which flows to line 1 of Form 1040, there is no need for the amount in box 12 to flow to another section of or supporting form for the 1040.

• This website and Zenefits employees do not provide legal advice.
• If you need more help understanding box 12 codes – as well as other W-2 box codes or internal revenue code in general, let us help.
• 590-A, Contributions to Individual Retirement Arrangements .
• This plan will include which expenses are covered, how much the employer contributes, the employee contribution limits, and any rules that apply.
• Original supporting documentation for dependents must be included in the application.
• The statements and opinions are the expression of the author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.

Electronically filing your business tax returns (e-filing) is secure, can save you time, and reduces errors. Although there are many codes available, keep in mind that most employees won’t use many of them. The IRS provides detailed instructions and there are many reputable software programs that can walk you through the intricacies of preparing your W-2s in an accurate and timely fashion. Severe penalties may be imposed for contributions and distributions not made in accordance with IRS rules.

W-2, Box 12 Codes

Timing is based on an e-filed return with direct deposit to your Card Account. Fees apply when making cash payments through MoneyGram® or 7-11®. Available at participating offices and if your employer participate in the W-2 Early Access℠ program. One state program can be downloaded at no additional cost from within the program. BB – Designated Roth contributions under a 403 plan. AA – Designated Roth contributions under a 401 plan.

• The employer also uses W-2 form to report FICA taxes for each employee to the Social Security Administration .
• DD—Cost of employer-sponsored health coverage.
• Box 15 reports your employer’s state and state tax identification number.
• You and any qualifying children must have valid social security numbers .
• The amounts for these programs, covered under Section 125 of the IRS code, are reflected in Box 14, IRC125.

ITC Financial Licenses, Inc. is licensed as a Money Transmitter by the New York State Department of Financial Services. These provisions limiting your liability whats 12a on w2 do not apply to debit transactions not processed by MasterCard or to unregistered cards. Availability of Refund Transfer funds varies by state.

Form W-2 Box 12 codes: instructions

See Online and Mobile Banking Agreement for details. The tax identity theft risk assessment will be provided in January 2019. The https://intuit-payroll.org/ tax identity theft risk assessment is based on various data sources and actual risk may vary beyond factors included in analysis.