Understanding W-2 Form: Detailed Breakdown of Box 12 Codes

Code A (Appetizer) specifically denotes uncollected Social Security (SS) or Railroad Retirement Tax Act (RRTA) tax on tips. It has nothing to do with actual food options like main courses, desserts, or beverages.

Code B on a W-2 form specifically refers to uncollected Medicare tax on tips that an employee has reported to their employer. This amount would need to be included when calculating total taxes owed.

Code C specifically refers to the cost of GTL coverage exceeding $50,000. This distinction is important to understand the coverage limits and financial implications for policyholders.

Code D (Deferral 401k) specifically relates to elective deferrals made to a section 401k plan, allowing individuals to contribute a portion of their salary to a retirement account on a pre-tax basis.

Code E (Education 403B) specifically pertains to elective deferrals under a section 403b salary reduction agreement, allowing employees to contribute part of their salary towards retirement savings.

Code F (408(k)(6) specifically pertains to elective deferrals under a section 408 (k)(6) retirement plan, highlighting the specific provision within the tax code for this type of retirement savings.

Code G (Government 457) specifically refers to elective and nonelective deferrals to a section 457(b) deferred compensation plan for government employees.

Code H refers to elective deferrals to a section 501 tax exempt organization plan, not pension distributions, HSA contributions, or charitable donations.

Code J (Jammies and Juice) typically represents nontaxable sick pay in employment tax forms. This type of pay is not subject to federal income tax withholding, Social Security tax, or Medicare tax.

Code K (Golden 14k) specifically refers to the 20% excise tax imposed on golden parachute payments as defined by the IRS. This tax is applicable when certain key employees receive large payouts upon termination or change in ownership of a company.

Code N specifically pertains to uncollected Medicare costs exceeding $50,000 related to GTL (Group Term Life) insurance.

Code P (Packing) specifically refers to excludable moving expense reimbursements paid directly to the employee, which is different from the other options provided.

Code Q represents nontaxable combat pay for military members serving in combat zones. This type of pay is excluded from gross income for tax purposes, providing tax benefits to those serving in dangerous missions.

Code R (Rx) specifically refers to employer contributions to a medical savings account (MSA), which is a type of account often used for saving funds for medical expenses.

Code S (Simple 408P) specifically pertains to employee salary reduction contributions under a section 408P SIMPLE retirement plan.

Code V (Value) in financial terms commonly refers to Stock Options, which are contracts that give the holder the right to buy or sell a stock at a predetermined price within a specific timeframe. Stock Options are a popular investment vehicle in the financial markets.

Code W is commonly used to represent Health Savings Account Contributions (HSA) on medical billing statements. This code indicates that the patient has contributed to their HSA for future healthcare expenses.

In the context of a Roth 401K, AA stands for Designated Roth Contributions to a 401K plan where employees make after-tax contributions to their retirement savings account.

BB (Roth 403B) specifically refers to Designated Roth Contributions to a 403B plan, not Traditional 403B contributions, 401K contributions, or Roth IRA contributions.

CC on a 2010 W2 form refers to Hire act exempt wages/tips

DD typically stands for 'double (D)' which in the context of employer sponsored health care coverage refers to the cost of the coverage.

Designated Roth contributions are contributions made after-tax, meaning the contributions are not tax-deductible when made but can be withdrawn tax-free in retirement, unlike traditional pre-tax contributions.

Code T (toddler) typically refers to Adoption Benefits, which are provided to employees who adopt a child. This benefit helps offset the costs associated with the adoption process and may include financial assistance, leave policies, or other forms of support for adoptive parents.

Code Z specifically refers to income under section 409A of the Internal Revenue Code, which governs the treatment of nonqualified deferred compensation plans.