Section Dd On W2

However if any amount is gross income it s already included in w 2 box 1.

Section dd on w2. Your wages reported in box 1 of form w 2 also includes this amount. Designated contributions to a roth 401 k retirement plan. Employees may receive a form w 2 with an amount reported in box 12 with code dd.

You may have noticed section 12 of your w2 contains alphabetic codes and amounts. The affordable care act requires employers to report the cost of coverage under an employer sponsored group health plan. The two most commonly seen codes are d and dd.

But fear not this amount is simply the total cost of the employee s health insurance coverage paid by both the employee and the employer and it is not taxable. The reporting requirement was enacted as part of the affordable care. The w2 box 12 codes are.

Reporting the cost of health care coverage on the form w 2 does not mean that the coverage is taxable. If you have an amount listed on your w 2 box 12 it could be one of several things. Code dd amounts are for informational purposes only they don t affect the numbers in your tax return.

That means his company is paying a difference of 13 214 00 per year or 254 12 per week for the remainder of our health insurance premiums. Income received under a nonqualified deferred compensation plan that fails to satisfy section 409a. Nevertheless you should enter the code dd and the amount of your employer sponsored health coverage plan if you see it on your w 2.

Many employers are eligible for transition relief for tax year 2012 and beyond until the irs issues final guidance for this reporting requirement. 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. You can enter it in the w 2 box 12 drop down menu it is found after z.