W-2 box 12 codes: what each code means

Box 12 on Form W-2 is where an employer lists specific kinds of pay, benefits and retirement deferrals that the IRS wants reported separately. Each entry is a code of one or two capital letters followed by an amount, such as D 5300.00 for $5,300 of pre-tax 401(k) deferrals. Many box 12 amounts are for information only; others explain why box 1 differs from your gross pay.

How box 12 works

• Box 12 has four slots, 12a to 12d. The slot letter means nothing: a 401(k) deferral is code D whether it sits in 12a or 12c.
• The employer must use the IRS code for each item, even when there is only one entry.
• Copy A, the copy filed with the Social Security Administration, holds no more than four box 12 items. If an employee has more, the employer issues a second W-2 for the extra codes.
• Most amounts are already counted in, or already left out of, box 1. Don't add them to your income again when you file.

New box 12 codes on the 2026 W-2

The One Big Beautiful Bill Act (P.L. 119-21) added three codes, and they appear for the first time in the IRS General Instructions for the 2026 Forms W-2 and W-3:

• TP: total cash tips reported to the employer. It supports the new deduction of up to $25,000 of qualified tips for tax years 2025 through 2028. The employer also enters the worker's Treasury Tipped Occupation Code in the new box 14b.
• TT: total qualified overtime compensation. Only the premium part of overtime required by the Fair Labor Standards Act counts, such as the "half" in time-and-a-half. It supports the overtime deduction of up to $12,500 ($25,000 if married filing jointly) for the same years.
• TA: employer contributions to a Trump account. Starting July 4, 2026, an employer can contribute up to $2,500 a year to a Trump account for an employee or an employee's dependent. Paid under a section 128 Trump account contribution program, the amount is excluded from the employee's income.

Tips (TP) and overtime (TT) are still wages. They stay in box 1 and are generally still subject to withholding and Social Security and Medicare tax. The deductions, if you qualify, are claimed on your tax return, not by your employer.

Every box 12 code

Codes that change your taxable wages

If box 1 is lower than your salary, pre-tax retirement deferrals are the usual reason. Amounts under codes D, E, F, G and S are left out of box 1 but still count as Social Security and Medicare wages in boxes 3 and 5. Say you earned $60,000 and put $5,000 into a pre-tax 401(k), with no other pre-tax deductions: box 1 shows $55,000, boxes 3 and 5 show $60,000, and box 12 shows D 5000.00.

Roth contributions work the other way. Codes AA, BB and EE are after-tax, so they are already inside box 1. Codes C, V, Z and GG are extra income your employer added to box 1, which can make box 1 higher than you expected. For how gross pay turns into taxable and take-home pay, see gross vs net pay.

The common codes explained

• D (401(k)). Your pre-tax deferrals for the year, with any age-50 catch-up contributions added into the same number. The 2026 limit for elective deferrals and Roth contributions combined is $24,500. Employer matching contributions are not reported here.
• E (403(b)) and G (457(b)). The same idea for 403(b) plans and 457(b) deferred compensation plans. Code G includes both elective and nonelective deferrals.
• AA and BB (Roth 401(k) and Roth 403(b)). Roth contributions are reported separately from pre-tax ones, so one W-2 can show both D and AA.
• C (group-term life insurance). Employer-paid coverage over $50,000 has a taxable cost. It is added to boxes 1, 3 and 5 and shown here so you know where the extra income came from.
• DD (health coverage). The cost of employer-sponsored health coverage. It is not taxable and not added to your income; it is there for information.
• W (HSA). Employer contributions to your health savings account, including what you put in through payroll under a cafeteria plan. These are generally not taxed.
• P (moving expenses). Only active-duty members of the Armed Forces moving under military orders for a permanent change of station, and employees or new appointees of the intelligence community, can have excludable moving reimbursements.
• Q (combat pay). Nontaxable combat pay reported by a military employer. It is not in box 1.

Box 12 vs box 14

Box 12 uses IRS codes with fixed meanings. Box 14 is the employer's free-form space. On 2026 forms it is split in two. Box 14a (Other) holds anything the employer wants to tell you, each item labeled: state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, educational assistance, after-tax pension contributions or the employer's 401(k) match. Box 14b holds up to two Treasury Tipped Occupation Codes, used when tips are reported with code TP.

A simple rule: if the IRS has a code for it, it goes in box 12; if not, it may go in box 14a. Full details are in the IRS General Instructions for Forms W-2 and W-3, and the occupation codes are on the IRS tipped occupations list.

Making W-2s for your employees? The W-2 builder lets you enter up to four box 12 codes and fills the official form; Making a W-2 explains which copies are in your PDF. For the filing dates, see W-2 and 1099 deadlines.