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If I have any amount shown on my W-2 Box 12 like code C, DD, P, etc does it mean that none of those can be deducted?

Does it also mean that all the box12 amounts are nontaxable and not included in box1, 3 and 5 of my W-2?

Is 401K included in Box1? Can it be deducted?

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1 Reply
dmertz
Level 15

If I have any amount shown on my W-2 Box 12 like code C, DD, P, etc does it mean that none of those can be deducted?

Your employer should have already have included or excluded from the appropriate boxes on your W-2 any amounts listed in box 12.  Specifically,

  • the code C amount must be included in boxes 1, 3 (up to the SS wage base)  and 5.
  • the code P amount is not included in boxes 1, 3 or 5.
  • the code DD amount is not included in boxes 1, 3 or 5.

Employee deferrals to a 401(k) (code D) are excluded from box 1 but must be included in boxes 3 (up to the SS wage base) and 5.  Deferrals to a Roth 401(k) (code AA) are included in box 1, 3 (up to the SS wage base) and 5.

See the instructions for Form W-2:  https://www.irs.gov/pub/irs-pdf/iw2w3_15.pdf

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