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Solved

W-2 form box 12 has the code DD meaning amount shown is not taxable income, where is this box 12 amount shown being subtracted from taxable income?

Forum|Forum|7 years ago
June 1, 2019
1 reply
0 views

where is nontaxable income which is reported on W-2 deducted from total wages, tips, other comp.?

ItsDeductible Online

Best answer by BillM223

The amount shown with code DD in box 12 for health coverage is not included in any of the three "wages" boxes (1, 3, and 5). That's why you don''t see it subtracted anywhere, because it wasn't ever included anywhere in the first place.

Contrast this with the amount for code "D" in box 12 (your 401(k) contribution). It is not taxable for purposes of federal income tax, but it is taxable for purposes of social security tax and Medicare tax, hence you see the difference between box 1 and boxes 3 & 5.

Level 15

The amount shown with code DD in box 12 for health coverage is not included in any of the three "wages" boxes (1, 3, and 5). That's why you don''t see it subtracted anywhere, because it wasn't ever included anywhere in the first place.

Contrast this with the amount for code "D" in box 12 (your 401(k) contribution). It is not taxable for purposes of federal income tax, but it is taxable for purposes of social security tax and Medicare tax, hence you see the difference between box 1 and boxes 3 & 5.

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