Updated for tax year 2026
At a glance:
- Box 12 on your W-2 reports special compensation and benefits using letter codes (A through TT), each paired with a dollar amount.
- Common codes include D for 401(k) deferrals, DD for employer health coverage cost, W for HSA contributions, and AA for Roth 401(k) contributions.
- New for 2026 W-2s: codes TA (Trump account employer contributions), TP (cash tips reported), and TT (qualified overtime compensation).
- Paper W-2s can show only four box 12 entries, but employers may report additional codes if they e-file.
- The dollar amounts help you and the IRS match retirement, health, and other benefits to the right tax forms.
Box 12 on your W-2 form reports several different types of compensation and benefits. If applicable, this box will display a single- or double-letter code followed by a dollar amount. Box 12 letter codes identify specific wages, benefits, and deferrals on your W-2. Each code tells you what type of amount your employer reported and whether it may affect your tax return.
Here’s what those codes mean:
| Box 12 code | Meaning |
|---|---|
| A | Uncollected Social Security or RRTA tax on tips |
| B | Uncollected Medicare tax on tips (but not Additional Medicare Tax) |
| C | Taxable cost of group-term life insurance over $50,000 (included in your wages in boxes 1, 3, and 5) |
| D | Elective deferrals to a section 401(k) cash or deferred arrangement plan, including a SIMPLE 401(k) arrangement |
| E | Elective deferrals under a section 403(b) salary reduction agreement |
| F | Elective deferrals under a section 408(k)(6) salary reduction SEP (this includes elective deferrals made to a Roth SEP IRA) |
| G | Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan |
| H | Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan |
| J | Nontaxable sick pay (information only) |
| K | 20% excise tax on excess golden parachute payments |
| L | Substantiated employee business expense reimbursements |
| M | Uncollected Social Security or RRTA tax on taxable cost of group-term life insurance over $50,000 (former employees only) |
| N | Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (but not Additional Medicare Tax — former employees only) |
| P | Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces or the intelligence community |
| Q | Nontaxable combat pay |
| R | Employer contributions to an Archer MSA |
| S | Employee salary reduction contributions under a section 408(p) SIMPLE plan (this includes salary reduction contributions made to a Roth SIMPLE IRA) |
| T | Adoption benefits |
| V | Income from exercise of non-statutory stock option(s) |
| W | Employer contributions (including employee contributions through a cafeteria plan) to an employee’s health savings account (HSA) |
| Y | Deferrals under a section 409A non-qualified deferred compensation plan |
| Z | Income under a non-qualified deferred compensation plan that fails to satisfy section 409A |
| AA | Designated Roth contributions under a section 401(k) plan |
| BB | Designated Roth contributions under a section 403(b) plan |
| DD | Cost of employer-sponsored health coverage |
| EE | Designated Roth contributions under a governmental section 457(b) plan |
| FF | Permitted benefits under a qualified small employer health reimbursement arrangement |
| GG | Income from qualified equity grants under section 83(i) |
| HH | Aggregate deferrals under section 83(i) elections as of the close of the calendar year |
| II | Medicaid waiver payments excluded from gross income (not included in Box 1) |
| TA | Employer contributions under a section 128 Trump account contribution program paid to a Trump account of an employee or a dependent of an employee |
| TP | Total amount of cash tips reported to the employer (use when figuring the qualified tip deduction on Schedule 1-A) |
| TT | Total amount of qualified overtime compensation (use when figuring the qualified overtime deduction on Schedule 1-A) |
For the official full list, see the IRS General Instructions for Forms W-2 and W-3.
FAQs
The bottom line
Box 12 codes turn your W-2 into a quick reference for retirement, health, and other benefit amounts. Simply match each code to its meaning, then use that information when you file. When you’re ready to file, TaxAct® can walk you through your W-2 entries step by step, so you report the right amounts on your return. Start your return on TaxAct.com.
This article is for informational purposes only and not legal or financial advice.
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Citations
Ponder, Meghen. “Guide to IRS Form W-2: Understanding Your Wage and Tax Statement.” TaxAct Blog, 10 Oct. 2024.
Internal Revenue Service. “General Instructions for Forms W-2 and W-3 (2026).” IRS.gov, 2026.
Ponder, Meghen. “What Is a Trump Account? Understanding the New Savings Accounts for Kids and Families.” TaxAct Blog, 29 May 2026.
Ponder, Meghen. “No Tax on Tips: What Tipped Workers Need to Know About the New Deduction.” TaxAct Blog, 10 Apr. 2026.
Ponder, Meghen. “No Tax on Overtime Explained: What the New Deduction Means for Your Paycheck.” TaxAct Blog, 3 Dec. 2025.
TaxAct. “File Taxes Online with TaxAct.” TaxAct, 2026.
