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Level 1
June 5, 2019
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Can I deduct the money listed on my W2 as “less other cafe 125”?

  • June 5, 2019
  • 2 replies
  • 9 views
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Best answer by DianeW777

No.  SECTION 125 is your employer's benefit plan. It is also known as a "cafeteria plan". Usually, what is reported there is your medical insurance premiums that are paid with pre-tax income. They are not taxed and are not included in your W-2 Box 1 wages so you can not deduct them as medical expenses.

Because the money used for this plan is not being taxed (pre-tax), then no deduction is allowed for the expense.

2 replies

DianeW777Answer
Level 15
June 5, 2019

No.  SECTION 125 is your employer's benefit plan. It is also known as a "cafeteria plan". Usually, what is reported there is your medical insurance premiums that are paid with pre-tax income. They are not taxed and are not included in your W-2 Box 1 wages so you can not deduct them as medical expenses.

Because the money used for this plan is not being taxed (pre-tax), then no deduction is allowed for the expense.

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Level 2
February 16, 2021

What if I have less other calf 125 $2158 but I also have in Box 12a DD $2117.14? From what I've read this seems redundant, like differents amounts of money referring to the same thing. I know next to nothing on the issue so your input would be greatly appreciated.

-Christi

Level 15
February 16, 2021

W-2 box 12 code DD refers to employer-paid and employer-sponsored health coverage.  This is amount is for information purposes only.

 

In addition, referring to section 125 cafeteria plan:

 

You do not need to enter information regarding your section 125 (cafeteria plan) for medical expenses anywhere on your tax return. ... The money that is put into the section 125 or FSA is pre-tax money. Therefore, there is not an additional deduction that you can take for those amounts.

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Level 2
February 23, 2020

Can we deduct the money listed on my W2 as “less other cafe 125” on NJ-1040NR?

Level 2
February 2, 2022

can I  deduct the money listed on my W2 as "less other Cafe 125"?

Level 15
February 2, 2022

No, the amount listed as Cafe 125 on your Form W-2 was already excluded from your gross income in box 1.

 

This amount represents tax free benefits provided by your employer including Flexible Spending Plan, health insurance and other benefits. 

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