U.S. · Tax forms
W-2 box 12 codes.
Type a code or a word and see what it means, in the IRS wording and in plain English.
Box 12 codes are letters that label benefits and special tax items on your W-2. D is a pre-tax 401(k) deferral, DD is the cost of employer health coverage (not taxable), W is employer HSA money, and TT is qualified overtime. Most are informational because box 1 already reflects them.
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Matching codes
How to read W-2 box 12
A W-2 can carry up to four coded items in boxes 12a to 12d. Each one is a letter code on the left and a dollar amount on the right, for example D 7000.00 for $7,000 of pre-tax 401(k) deferrals. The codes do not follow the order of the boxes: the IRS notes that a lone code D can sit in box 12a, 12b, 12c or 12d. Type a code or a word into the search box above and the table below narrows to the matching rows. The list is the one the IRS gives employers, so it covers every code you can see on a form for the 2026 tax year, including the newest TA, TP and TT.
Every box 12 code
| Code | IRS description | What it means for you |
|---|---|---|
| A | Uncollected social security or RRTA tax on tips | Social security tax on your tips that your employer could not collect from your pay. It is not in box 4, and you owe it with your return. |
| B | Uncollected Medicare tax on tips | Medicare tax on tips that could not be collected. It is not in box 6 and does not include Additional Medicare Tax. |
| C | Taxable cost of group-term life insurance over $50,000 | The taxable value of employer life insurance above $50,000. It is already included in boxes 1, 3 and 5, so you do not add it again. |
| D | Elective deferrals under a section 401(k) plan | Your pre-tax 401(k) contributions, including catch-up. Includes a SIMPLE that is part of a 401(k). Not reported as wages in box 1. |
| E | Elective deferrals under a section 403(b) salary reduction agreement | Your pre-tax contributions to a 403(b) plan, common for schools and nonprofits. |
| F | Elective deferrals under a section 408(k)(6) salary reduction SEP | Your salary deferrals into a salary reduction SEP, including a Roth SEP IRA. |
| G | Elective deferrals and employer contributions to a section 457(b) plan | Deferrals plus employer contributions to a governmental or nongovernmental 457(b) plan. The only deferral code that includes nonelective employer money. |
| H | Elective deferrals under section 501(c)(18)(D) tax-exempt organization plan | Deferrals to a 501(c)(18)(D) plan. The amount is included in box 1 as wages and you deduct it on your Form 1040. |
| J | Nontaxable sick pay | Sick pay paid by a third party that is not taxable because you paid into the plan. It is not in boxes 1, 3 or 5. |
| K | 20% excise tax on excess golden parachute payments | The 20% excise tax on excess golden parachute payments to certain key corporate employees. |
| L | Substantiated employee business expense reimbursements | The part of a per diem or mileage reimbursement treated as substantiated (the nontaxable part). Any excess is in boxes 1, 3 and 5. |
| M | Uncollected social security or RRTA tax on group-term life insurance over $50,000 (former employees) | Social security tax not collected on life insurance coverage given to a former employee or retiree. |
| N | Uncollected Medicare tax on group-term life insurance over $50,000 (former employees) | Medicare tax not collected on that same coverage for former employees. |
| P | Excludable moving expense reimbursements for the Armed Forces or intelligence community | Moving reimbursements paid directly to active-duty military on a permanent change of station order, or to intelligence community employees. |
| Q | Nontaxable combat pay | Military combat pay that is excluded from taxable wages. |
| R | Employer contributions to an Archer MSA | What your employer put into an Archer medical savings account for you. |
| S | Employee salary reduction contributions under a section 408(p) SIMPLE plan | Your deferrals into a SIMPLE IRA, including a Roth SIMPLE IRA. A SIMPLE inside a 401(k) uses code D instead. |
| T | Adoption benefits | Adoption expenses your employer paid or reimbursed, shown in full, including any amount above the exclusion limit of $17,670 for 2026. |
| V | Income from the exercise of nonstatutory stock option(s) | The spread between market value and exercise price when you exercised nonstatutory options. Already included in boxes 1, 3 and 5. |
| W | Employer contributions to a health savings account (HSA) | Employer HSA money, including what you elected through a cafeteria plan. It counts toward your annual HSA limit. |
| Y | Deferrals under a section 409A nonqualified deferred compensation plan | Optional. Shows current-year deferrals to a nonqualified plan. The IRS says employers need not report it. |
| Z | Income under a nonqualified deferred compensation plan that fails section 409A | Amounts taxable because a deferred compensation plan failed section 409A. Also in box 1, and an additional tax applies on your return. |
| AA | Designated Roth contributions under a section 401(k) plan | Your after-tax Roth 401(k) contributions. These are not the same as pre-tax code D. |
| BB | Designated Roth contributions under a section 403(b) plan | Your Roth 403(b) contributions. |
| DD | Cost of employer-sponsored health coverage | The total cost of your employer health plan, employer and employee share together. The IRS says the amount reported with DD is not taxable. |
| EE | Designated Roth contributions under a governmental section 457(b) plan | Your Roth contributions to a governmental 457(b) plan. |
| FF | Permitted benefits under a qualified small employer health reimbursement arrangement | The QSEHRA benefit you were entitled to for the year, not what you actually received. The 2026 maximum is $6,450 ($13,100 with family coverage). |
| GG | Income from qualified equity grants under section 83(i) | Income from qualified equity grants under a section 83(i) election. |
| HH | Aggregate deferrals under section 83(i) elections | The running total of income deferred under section 83(i) elections at year end. |
| II | Medicaid waiver payments excluded from gross income under Notice 2014-7 | Medicaid waiver payments (for example home care) that were left out of box 1. |
| TA | Employer contributions to a Trump account under a section 128 program | Employer money paid into a Trump account for you or a dependent. From July 4, 2026 employers may contribute up to $2,500 a year, excluded from your income if paid under a qualifying program. |
| TP | Total amount of cash tips reported to the employer | Your cash tips reported to the employer. Tips remain subject to income tax withholding, social security and Medicare tax. Box 14b shows an occupation code. |
| TT | Total amount of qualified overtime compensation | Only the premium part of FLSA overtime, for example the "half" in time-and-a-half. Overtime stays subject to withholding and payroll taxes. |
Source for this table: IRS General Instructions for Forms W-2 and W-3 (2026), Box 12, Codes, retrieved October 26, 2026. The plain-English column is our summary of the IRS wording, not additional IRS guidance.
Worked example: a W-2 with three codes
Maria earned $62,000 in 2026. Her W-2 shows box 1 wages of $56,200 and three box 12 entries: D 5800.00, DD 14210.00 and AA 1200.00. Reading them in order: code D says she deferred $5,800 to her 401(k) before tax, which is why box 1 is $62,000 − $5,800 = $56,200. Code DD says her employer plan cost $14,210 in total, which the IRS says is not taxable. Code AA says $1,200 of her pay went into a Roth 401(k) after tax, so unlike code D it was not taken out of box 1. Together D and AA mean she contributed $7,000 to the plan, which counts against the annual deferral limit. Nothing in her box 12 raises her taxable income, so she does not add anything to box 1 when she files.
How to decide if a code needs action
- Nothing to do: C, D, E, F, G, S, V, W, DD, AA, BB, EE, FF, P, Q, R, T, J, L, GG, HH, II and Y. The amount is informational or is already reflected in boxes 1, 3 and 5. Keep it for your records, for example to check that your total deferrals stayed under the limit if you changed jobs.
- Check your tax return instructions: A, B, M and N show social security or Medicare tax that your employer could not collect, K shows an excise tax and Z shows income under a failed 409A plan. These can mean additional tax on Form 1040.
- Check the new entries: TP shows cash tips reported to the employer, TT shows qualified overtime and TA shows an employer Trump account contribution. The no tax on tips, no tax on overtime and Trump account calculators explain how those amounts are used.
- Ask payroll: if a code does not match your benefits, for example a code H when you have no tax-exempt plan, ask the employer for a corrected form (a W-2c) before you file.
Common mistakes
- Treating code DD as income. The IRS says it is not taxable, and adding it would overstate your wages.
- Mixing up D and AA. Pre-tax D reduces box 1, Roth AA does not. If you changed plan types mid-year you may see both.
- Reading an amount as money you received. Code FF shows the benefit you were entitled to under a QSEHRA, not what you were actually paid.
- Expecting only four codes in total. A second W-2 from the same employer is normal when more than four items need to be listed.
For overtime and bonus withholding see the bonus tax calculator, for contribution ceilings the 401(k) contribution limit calculator and for HSA and FSA caps the FSA and HSA limits by year.
Sources
Retrieved October 26, 2026.
- IRS, General Instructions for Forms W-2 and W-3 (2026), Box 12, Codes (retrieved 2026-10-26): code names, reporting rules and the 2026 amounts quoted for codes T, FF and the 401(k) example.
- IRS, About Form W-2, Wage and Tax Statement: form and instruction downloads for each year.
As of October 26, 2026 the IRS list runs from A through HH plus II, TA, TP and TT, with letters I, O, U, X and others unused.
Frequently asked questions
What is box 12 on a W-2?
Box 12 lists items that do not fit in the numbered boxes, each tagged with a letter code from A to HH or a two-letter code such as DD or TT, and a dollar amount. Most are retirement contributions, health benefits and special tax items. Many are informational only because the amount is already counted elsewhere on the form.
What does code DD on my W-2 mean?
Code DD is the total cost of your employer-sponsored health coverage, including both what you and your employer pay. The IRS states the amount reported with DD is not taxable, so it does not raise your income. It appears so you can see what coverage cost.
Do I add box 12 amounts to my income?
Usually not. Box 1 already reflects them. Codes D, E, F and S were taken out of your box 1 wages before tax, codes C and V are already inside boxes 1, 3 and 5, and DD is not taxable. Codes A, B, M, N, K and Z can mean extra tax owed, so check the Form 1040 instructions for those.
What is the difference between code D and code AA?
Code D is a pre-tax 401(k) deferral, so it was excluded from box 1. Code AA is a designated Roth 401(k) contribution, made after tax, so it stays in box 1. Both count toward the same annual 401(k) deferral limit, which is $24,500 for 2026 in the IRS example.
What are codes TA, TP and TT?
They are the newest entries in the 2026 instructions. TA is an employer contribution to a Trump account, TP is total cash tips reported to the employer and TT is qualified overtime compensation. The 2026 edition of the IRS instructions lists all three, so expect to see them on W-2s issued in January 2027.
Why does my W-2 show more than one code?
Each coded item gets its own entry in box 12a to 12d, and copy A of the form can show no more than four. If an employer has more than four items, it issues a second W-2 to carry the rest, so two W-2s from one employer are normal.
Where do I find the official list?
The IRS publishes the codes in the General Instructions for Forms W-2 and W-3 under Box 12, Codes. The list on this page was copied from the 2026 edition in October 2026. If your W-2 is for an earlier year, the older instructions for that year are the authoritative list.
Not tax advice
This page summarizes IRS instructions written for employers and is not tax advice. Your employer, payroll provider or a tax professional can confirm what a code means on your own form. Everything runs in your browser; nothing you enter is sent anywhere.