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.24-Jun-2021
- The amount shown on your W-2, Box 12, using Code DD, represents the of the cost of pre-tax employer-sponsored health coverage, and is for your information only. The amount reported with Code DD is not taxable, but neither can it be claimed as a tax deduction (medical expense) by an individual taxpayer.
Is code DD on w2 deductible?
The amount shown on your W-2, Box 12, using Code DD, represents the of the cost of pre-tax employer-sponsored health coverage, and is for your information only. The amount reported with Code DD is not taxable, but neither can it be claimed as a tax deduction (medical expense) by an individual taxpayer.
What does DD mean on w2?
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.
What are boxes D and DD on w2?
Most employees only see a few codes in Box 12. Some of the most common ones are Code D for contributions to a 401(k) plan and Code DD for the cost of employer-sponsored health care.
Is Box 12 Code DD required?
Individuals (employees) do not have to report the cost of coverage under an employer-sponsored group health plan that may be shown on their Form W-2, Wage and Tax Statement, in Box 12, using Code DD. This reporting is for informational purposes only, to show employees the value of their health care benefits.
What does Box 12 Code D mean on W2?
The W2 Box 12 codes are: A — Uncollected Social Security or RRTA tax on tips. C — Taxable costs of group-term life insurance over $50,000 (included in W-2 boxes 1,3 (up to Social Security wages base), and box 5. D — Elective deferral under a 401(k) cash or arrangement plan. This includes a SIMPLE 401(k) arrangement.
What is Box 12a DD on a W2 form?
Hello – Code DD in Box 12 is the cost that your employer paid for your Health Insurance. It is informational but it is not included in your tax filing. You can enter it in the W-2 Box 12 drop down menu – it is found after z.
Where is Box D on w2?
Form W-2 (wage statement) Box D is called the Control Number field. It is usually located below or near the Employer’s Name and Address. The Box D Control Number is a code that uniquely identifies your particular W-2 document in your employer’s records.
What do I put for Box 12 on my taxes?
Railroad employers use this box to report railroad retirement (RRTA) compensation, Tier 1 tax, Tier 2 tax, Medicare tax and Additional Medicare Tax. Include tips reported by the employee to the employer in railroad retirement (RRTA) compensation.
Where is Box 14 Code A?
Line 14A – Net Earnings (Loss) from Self-Employment – Amounts reported in Box 14, Code A represent the amount of net earnings from self-employment.
What does Box 14 mean on my W2?
Box 14 — Employers can use this W-2 box to report information such as: State disability insurance taxes withheld. Health insurance premiums deducted. Nontaxable income.
Does Box 12 dd include dental?
Sum the “Cost of Employer-Sponsored Medical Care” and “ Dental Care” and report in box 12 of the W-2 using code DD. If the employee waived medical, report dental. Consider each month separately to account for any mid-year changes in tier or plan. Then calculate the total for the tax year.