Many employers are required to report the cost of an employee's health care benefits in Box 12 of Form W-2,
using Code DD to identify the amount
. This amount is reported for informational purposes only and is NOT taxable.
Does Box 1 on W-2 include health insurance?
You'll need to review your paycheck stub to determine when you pay for health insurance. Also,
if you have pre-tax amounts withheld from your paycheck for your insurance, the amount on your W-2, Box 1 won't include the cost of your health insurance
.
Is code DD on W-2 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 is Box 14 on the W-2 for?
Box 14:
Your employer may report additional tax information
here. If any amounts are reported in Box 14, they should include a brief description of what they're for. For example, union dues, employer-paid tuition assistance or after-tax contributions to a retirement plan may be reported here.
What is the DD amount on my W-2?
DD – Code DD includes
cost of employer-sponsored health coverage
. Information only.
Why is Box 1 and 16 different?
If retirement contributions are exempt from state income tax, Boxes 1 and 16 may be the same.
If contributions are subject to state income tax, Box 16 may be higher than Box 1
. For example, Pennsylvania requires employees to pay state income tax on retirement contributions.
What is Box 18 on my W-2?
Box 18:
Local wages
. Box 18 reports the total amount of wages subject to local, city, or other state income taxes. Often different than Box 16 and Box 1 (Federal Wages).
Does W-2 wages include insurance?
Therefore, when you get your W-2,
your box 3, income subject to Social Security taxes, and box 5, income subject to Medicare taxes, will include your pretax health insurance premiums
.
What is D and DD in box 12?
Code DD is only information to you to tell you how much your employer spend for health coverage
– you do nothing with it. Code D is the amount of salary deferrals to a 401(k) plan. You do nothing with than either other than enter it on the W-2 screen in box 12 just like it is on the paper W-2.
Do I need to report Box 14?
Generally, the amount in Box 14 is for informational purposes only; however,
some employers use Box 14 to report amounts that should be entered elsewhere on your return
.
Does Box 14 on W-2 affect taxes?
The information that your employer lists in Box 14 of your W-2
does not usually affect your income tax return
. In fact, for many Box 14 entries, the IRS does not even provide a place for it to get reported on your return forms. They are reported to you in Box 14 simply for informational purposes.
Is the amount in Box 14 of W-2 taxable?
Your contributions shown in Box 14 are
not subject to federal income tax, but are subject to FICA (social security and Medicare), state, and local taxes
.
Is Box 12 dd include in Box 1?
the code DD amount is
not included
in boxes 1, 3 or 5.
Is code DD include in Box 1?
One of my W2 entries is labeled “DD” which is not taxable. However,
the amount is included in “Box 1” on the W2
. How do I deal with this problem? You are correct that an amount listed in Box 12 as Code DD is not taxable.
Most premiums are paid with pre-tax dollars, which means they are deducted from your wages before taxes are applied. Deducting them again as a medical expense would be “double-dipping.”
You can only deduct the premiums if your employer included them in box 1 (Gross Wages) of your W-2
.
How do I calculate my W-2 Box 1 on my paystub?
- Find and click on the Employee Center application.
- Once in the Employee Center application, click on the Payroll and Tax box.
- Click on View Payroll YTD Totals on the left hand side of the screen.
How is W-2 calculated?
The amount is calculated as
YTD earnings minus pre- tax retirement and pre-tax benefit deductions plus taxable benefits
(i.e., certain educational benefits). Box 2 “Federal income tax withheld”: This is federal income tax withheld from your pay based on your W-4.
How do I calculate taxable wages?
- Total all the wages, including salary, overtime, and tips. …
- Subtract any non-taxable wages from the gross wage. …
- Subtract pre-tax deductions, such as retirement contributions and flexible spending accounts.
What is Box 17 on my W-2?
Box 17:
State Income tax
– This amount represents the total of state income taxes withheld from your paycheck for the wages reported in Box 16.
Should Box 1 match box 16 on your W-2 form?
If you participate in a 401k retirement plan and are reporting PA income, box 1 and box 16 will never match
. Federal allows your 401k contributions (box 12, code “D”)to be deducted from your gross wages.
How are Medicare wages calculated?
The amount of taxable Medicare wages is determined by
subtracting the following from the year-to-date (YTD) gross wages on your last pay statement
. Health – subtract the YTD employee health insurance deduction. Dental – subtract the YTD employee dental insurance deduction.
Does gross income include health insurance?
If your pay stub lists “federal taxable wages,” use that. If not,
use “gross income” and subtract the amounts your employer takes out of your pay for child care, health insurance, and retirement plans
. Include “net self-employment income” you expect — what you'll make from your business minus business expenses.
