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New Member
posted May 31, 2019 4:47:37 PM

What does the code "DD" on the W-2 form box 12a mean?

0 13 64990
13 Replies
New Member
May 31, 2019 4:47:39 PM

bigdi30-

Hello -  Code DD in Box 12 is the cost that your employer paid for your Health Insurance.

It is informational but it is not included in your tax filing.  You can enter it in the W-2 Box 12 drop down menu - it is found after z.

Hope this helps and thank you for using TurboTax!

New Member
May 31, 2019 4:47:41 PM

when i enter an amount, it affects my taxes nrgatively. Why ?

New Member
May 31, 2019 4:47:43 PM

Did you enter it as code DD?

New Member
May 31, 2019 4:47:45 PM

It also include employee's portion of the health (but not dental/vision) insurance, not just the employer paid amount.

New Member
May 31, 2019 4:47:46 PM

Yes - it should be the employer portion only   

Employee contribution most of the time are excluded in the Box 1 taxable income so you do not pay tax on the employee contributions

New Member
May 31, 2019 4:47:48 PM

Actually, it is NOT the employer portion only.  It is the premium amount paid to the insurer for coverage for the year (if fully insured) or, there are some options for what to report for self-insured companies.  
Source: <a rel="nofollow" target="_blank" href="https://www.irs.gov/Affordable-Care-Act/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage">https://www.irs.gov/Affordable-Care-Act/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage</a>
"In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee. See the chart, below, and the questions and answers for more information."

Level 15
May 31, 2019 4:47:51 PM

The original question (and answer) was from 2 years ago, before the implementation of the ACA.

New Member
May 31, 2019 4:47:53 PM

Actually, that is false.  The ACA was signed into law 3/23/2010, over 5 years ago.  Furthermore, the ACA has been implemented in bits and pieces over the years.  Box 12 code DD was implemented before several other parts of the ACA (such as employer and individual mandates), yes, but not before the ACA itself.
Source: <a rel="nofollow" target="_blank" href="https://www.whitehouse.gov/healthreform/healthcare-overview">https://www.whitehouse.gov/healthreform/healthcare-overview</a>

Level 15
May 31, 2019 4:47:55 PM

stryeyz and douglashuang9t are correct.  IRS Notice 2012-9 Q & A-14 indicates that the amount reported with code DD is that aggregate cost of employer sponsored health insurance and is to include both the portion of the cost paid by the employer and the portion of the cost paid by the employee.  Regardless, this is informational only and does not affect your tax return.

Level 15
May 31, 2019 4:47:58 PM

This is what is listed on the back of the IRS form W-2 for 2015:

DD—Cost of employer-sponsored health coverage. The amount reported with Code DD is not taxable.

https://www.irs.gov/pub/irs-pdf/fw2.pdf

New Member
Sep 22, 2019 5:43:57 PM

Why does it impact your taxes?  I am a retire in May of 2018 and Turbo Tax is trying to include block 12DD as income from June to December. Why is it doing this if info is informational.

 

 

Level 15
Sep 22, 2019 6:15:16 PM

@bobo_fly2012 - The W-2 box 12 code "DD" is for your information only.    It does not affect your tax return in any way.  In fact, it is OK to ignore it and not even enter it.

 

If for some reason, it did change your tax then it was entered incorrectly ( a code "D" can affect the tax return if one "D" of the code "DD" is missing).   I suggest you totally delete the W-2 and re-enter.

Level 15
Sep 22, 2019 7:00:01 PM

First ... the Refund-O-Meter will constantly change until you are completely done entering in everything into the program ... and it is possible that you had a form 8880 retirement credit included in the refund amount until you entered more income ... the box 12 code DD should not change anything by itself ... I would look at the form 1040 before and after entering in that W-2 to see what changes as you add more income.