Are your dependent care benefits in box 10 taxable? What do all those letters in box 12 mean? What does box 14 mean?
Box 10: Dependent Care Benefits
This box is the total dependent care benefits that your employer paid to you or incurred on your behalf. If the value is over $5,000 (or $2,500 if married filing separately), it will also be included in Box 1. You may be taxed on all or part of your dependent care benefits based on the information you include on Form 2441 (Child and Dependent Care Expenses). Form 2441 is part of the Dependent Care Credit section of Credit Karma Tax.
For more information about this process, check out Publication 503 to determine who qualifies as a dependent and what expenses are eligible. You can also try out the Interactive Tax Assistant to see if you can claim someone as your dependent.
Box 12: Letter Codes
Pay attention to the values and codes on Box 12, because this is one of the most common errors on a W-2 affecting sections such as healthcare and retirement plans. Make sure to enter the correct codes shown on your W-2 when you’re entering this information into Credit Karma Tax to make sure you pay the correct amount of taxes.
Here’s are some common codes you may find on your W-2, box 12:
- AA: Designated Roth contributions under a section 401(k) plan
- BB: Designated Roth contributions under a section 403(b) plan
- C: Taxable cost of group-term life insurance over $50,000
- DD: Cost of employer-sponsored health coverage
- D: Elective deferrals under a section 401(k) cash or deferred arrangement plan (including a
- SIMPLE 401(k) arrangement)
- EE: Designated Roth contributions under a governmental section 457(b) plan
- E: Elective deferrals under a section 403(b) salary reduction agreement
- F: Elective deferrals under a section 408(k)(6) salary reduction SEP
- 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
- R: Employer contributions to an Archer MSA
- S: Employee salary reduction contributions under a section 408(p) SIMPLE plan
- T: Adoption benefits
- W: Employer contributions to an employee’s health savings account (HSA)
- Y: Deferrals under a section 409A nonqualified deferred compensation plan
If your W-2 has a code that isn’t listed here, see the instructions that came with your W-2 form or see the W-2 and W-3 Instructions.
Box 14: Other
This box is for remaining information provided by employers that doesn’t fall under any other category. Some items you may see here are state disability insurance taxes withheld, union dues, health insurance premiums deducted, etc.
Depending on the item, it may also be reported on another part of your tax return. For example, health insurance premiums listed on box 14 of your W-2 will flow to Schedule A line 5, (medical expenses) . If Box 14 doesn’t have a value on your W-2, leave this section blank instead of entering 0.