Yes, those codes in box 12  on your W-2 form really do have meaning.  Sometimes using the right code on your income tax preparation can result in an added tax break for you. Other times, for example with code DD, you can see just how much your employer has paid out so that you could have certain employment benefits and perks. In the coming years Code DD will also be used to validate whether or not you and your employer are compliant with the Affordable Care Act laws.
Here’s what each code indicates:

A: Uncollected social security or RRTA tax on tips

B: Uncollected Medicare tax on tips.

C: Taxable cost of group-term life insurance over $50,000

D: Elective deferrals to a section 401(k) cash or deferred arrangement

E: Elective deferrals under a section 403(b) salary reduction arrangement

F: Elective deferrals under a section 408(k)(6) salary reduction SEP

G: Elective deferrals and employer contributions to a section 457(b) deferred compensation plan

H: Elective deferrals under a section 501(c)(18)(D) tax exempt organization plan

J: Nontaxable sick pay

K: 20% excise tax on excess golden parachute payments

L: Substantiated employee business expense reimbursements

M: Uncollected social security or RRTA tax on taxable cost of group-term life insurance over $50,000

N: Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000

P: Excludable moving expense reimbursements paid directly to employee

Q: Nontaxable combat pay

R: Employer contributions to an Archer MSA

S: Employee salary reduction contributions under a section 408(p) SIMPLE

T: Adoption benefits

V: Income from the exercise of nonstatutory stock options

W: Employer contributions to an employee’s Health Savings Account

Y: Deferrals under a section 409A nonqualified deferred compensation plan

Z: Income under a section 409A on a nonqualified deferred compensation plan

AA: Designated Roth contributions to a section 401(k) plan

BB: Designated Roth contributions to a section 403(b) salary reduction agreement

DD: Cost of employer-sponsored health coverage

EE: Designated Roth contributions under a governmental section 457(b) plan.

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