Box 12 of Form W-2 reports specific types of pay and benefits using one- or two-letter IRS codes, each followed by a dollar amount. The most common are D (401(k) deferrals), DD (cost of employer health coverage, not taxable), W (employer HSA contributions), and AA (Roth 401(k) contributions). Starting with 2026 W-2s there are three new codes: TA, TP (reported cash tips), and TT (qualified overtime).
Quick facts about Box 12
- The letter is the code; the number next to it is the dollar amount. The slots 12a–12d don't mean anything. Code D can sit in 12a or 12c.
- Copy A can show at most four Box 12 items. If you have more, your employer issues a second W-2.
- Some codes are already counted in Box 1 wages (for example C and V). Others are excluded (for example D) or are information only (DD).
- New for 2026: TA (Trump account contributions), TP (cash tips reported to the employer), and TT (qualified overtime).
Complete list of W-2 Box 12 codes
| Code | What it reports |
|---|---|
| A | Uncollected Social Security or RRTA tax on tips |
| B | Uncollected Medicare tax on tips |
| C | Taxable cost of group-term life insurance over $50,000 (included in Boxes 1, 3, and 5) |
| D | Elective deferrals to a 401(k) plan, including a SIMPLE 401(k) |
| E | Elective deferrals under a 403(b) salary reduction agreement |
| F | Elective deferrals under a 408(k)(6) salary reduction SEP |
| G | Elective deferrals and employer contributions to a 457(b) deferred compensation plan |
| H | Elective deferrals to a 501(c)(18)(D) tax-exempt organization plan (included in Box 1) |
| J | Nontaxable sick pay paid by a third party |
| K | 20% excise tax on excess golden parachute payments |
| L | Substantiated employee business expense reimbursements (per diem or mileage) |
| M | Uncollected Social Security or RRTA tax on group-term life insurance over $50,000 (former employees) |
| N | Uncollected Medicare tax on group-term life insurance over $50,000 (former employees) |
| P | Excludable moving expense reimbursements paid to members of the Armed Forces or intelligence community |
| Q | Nontaxable combat pay |
| R | Employer contributions to an Archer MSA |
| S | Employee salary reduction contributions to a 408(p) SIMPLE plan |
| T | Adoption benefits |
| V | Income from exercising nonstatutory stock options (included in Boxes 1, 3, and 5) |
| W | Employer contributions to a health savings account (HSA), including cafeteria-plan amounts |
| Y | Deferrals under a section 409A nonqualified deferred compensation plan |
| Z | Income under a nonqualified deferred compensation plan that fails section 409A |
| AA | Designated Roth contributions to a 401(k) plan |
| BB | Designated Roth contributions to a 403(b) plan |
| DD | Cost of employer-sponsored health coverage (not taxable) |
| EE | Designated Roth contributions to a governmental 457(b) plan |
| FF | Permitted benefits under a qualified small employer HRA (QSEHRA) |
| GG | Income from qualified equity grants under section 83(i) |
| HH | Aggregate deferrals under section 83(i) elections |
| II | Medicaid waiver payments excluded from gross income |
| TA | New 2026: employer contributions to a Trump account (section 128) |
| TP | New 2026: total cash tips the employee reported to the employer |
| TT | New 2026: total qualified overtime compensation |
There are no codes I, O, U, or X. Codes are assigned by the IRS, so if you see one not on this list, ask your employer, since it may belong in Box 14 instead.
Code DD: cost of employer-sponsored health coverage
Code DD is the most searched Box 12 code. It shows the cost of your employer-sponsored health coverage. Per the IRS, it generally includes both the portion your employer paid and the portion you paid. The IRS instructions are direct: the amount reported with code DD is not taxable. It's informational only, so you don't enter it anywhere on your Form 1040, and it doesn't increase your income.
Code D and other retirement codes (E, F, G, S, AA, BB, EE)
Code D shows what you deferred into a traditional 401(k). Those deferrals are left out of Box 1 taxable wages but still count for Social Security and Medicare wages, which is why Box 1 is often lower than Boxes 3 and 5. E (403(b)), F (SEP), G (457(b)), and S (SIMPLE IRA) work the same way for other plan types. Roth contributions are reported separately with AA (401(k)), BB (403(b)), and EE (governmental 457(b)). They're made with after-tax dollars, so they stay in Box 1.
Codes that are already in your wages: C and V
Code C (taxable group-term life insurance over $50,000) and code V (the spread when you exercise nonstatutory stock options) are already included in Boxes 1, 3, and 5. Don't add them to your income a second time. Box 12 just shows you how much of your wages came from them.
Codes A and B: uncollected tax on tips
If you reported tips but your paychecks weren't big enough for your employer to withhold the Social Security (code A) and Medicare (code B) tax on them, the uncollected amounts appear here. You pay them with your return; see the Schedule 2 (Form 1040) instructions for line 13. Tipped workers can read more in our Form 4137 guide.
New for 2026: codes TA, TP, and TT
- TA — Employer contributions to a Trump account for an employee or the employee's dependent. Employers can contribute up to $2,500 a year beginning July 4, 2026.
- TP — Total cash tips you reported to your employer. Whenever TP is used, the employer must also enter your Treasury Tipped Occupation Code(s) in Box 14b. These are the tips that can feed the No Tax on Tips deduction. See our No Tax on Tips rules and TTOC code list.
- TT — Total qualified overtime compensation: only the premium portion the FLSA requires, such as the "half" in time-and-a-half. It supports the separate overtime deduction on Schedule 1-A.
Box 12 vs Box 14
- Box 12 only uses IRS-assigned codes. Box 14 is split on 2026 W-2s: Box 14a ("Other") is for anything else your employer wants to show you, such as union dues or uniform payments, and Box 14b holds Treasury Tipped Occupation Codes. See our guide to W-2 Box 14b.
What do the codes in Box 12 of my W-2 mean?
Each letter is an IRS code for a specific type of pay or benefit, and the number next to it is the dollar amount. For example, D is 401(k) deferrals, DD is the cost of employer health coverage, W is employer HSA contributions, and AA is Roth 401(k) contributions.
Is code DD on my W-2 taxable?
No. The IRS instructions say the amount reported with code DD is not taxable. It's informational and shows the total cost of your employer-sponsored health coverage.
Does it matter whether a code is in 12a, 12b, 12c, or 12d?
No. The slots don't relate to the codes. Your employer can put any code in any slot. Copy A can show up to four items, and more items require an additional W-2.
What is code TP on a W-2?
Code TP, new for 2026 Forms W-2, is the total cash tips the employee reported to the employer. When TP is reported, Box 14b must show the Treasury Tipped Occupation Code for the job where the tips were earned.
What is code TT on a W-2?
Code TT, new for 2026, is the total qualified overtime compensation: only the premium portion of FLSA-required overtime, such as the "half" in time-and-a-half.
Why is my Box 1 lower than Box 3 and Box 5?
Usually because of pre-tax elective deferrals reported in Box 12, such as code D (401(k)) or E (403(b)). They're excluded from Box 1 taxable wages but still count as Social Security and Medicare wages.
This article is general information, not tax advice. Codes and rules come from the IRS 2026 General Instructions for Forms W-2 and W-3, checked in October 2026.