Questions about my W-2

[melissaforpeace315]

Hi all! I was reviewing my 2021 W-2 and just had a quick question.  I read the "Instructions" section on the second page of my W-2 in hopes to gain better clarification about what Box 12 is for, but the more I read it the more I get confused.  Would you be able to explain to me in just a few sentences / dumb it down what these boxes really mean?  I'm not seeking tax advice, I just kind of don't know what these boxes mean....

12a: there is a letter code "C"

12b: there is a letter code "D"

12c: there is a letter code "W"

12d: there is a letter code "DD"

Also, I received two W-2's for 2021, since I had two different jobs (switched jobs in the middle of 2021). For one of my W-2's, the Box 15 states "TX" but for the other W-2, the Box 15 section is blank.  Is that okay?  Just making sure that a blank Box 15 is okay....

I really appreciate any help you can provide! I'm not seeking tax/professional advice, I guess I'm just seeking for better understanding on the boxes.... thank you!

[DanaB27]

Yes, it is ok for you box 15 to be blank since Texas does not have a State Income Tax.

Box 12 with a code C is the taxable cost of group-term insurance over $50,000. If you had group term life insurance through your workplace, the premiums for any value over $50,000 become taxable income to you and are included in box 12.

Box 12 with a code D are Contributions to your 401(k) plan. Contributions to a 401(k) plan reduce your taxable income in box 1. 

Box 12 with code W are Company contributions to an employee's health savings account (HSA).The IRS, by default, assumes that these contributions are taxable until you complete the Form 8889. Please make sure, that you answer the follow-up questions about HSA. If they do not come up go to to Federal Taxes->Deductions & Credits->Medical->HSA, MSA Contributions.

Box 12 with code DD are Cost of employer-sponsored health coverage. These are the total cost of what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only—they don't affect the numbers in your tax return.

[melissaforpeace315]

@DanaB27 Thank you so much!  Wait, I thought that I didn't need to have a Form 8889 to report my HSA contributions?  I thought that when I file my 2021 taxes through TurboTax, that I just need my employer's W-2 to report that I have contributed to an HSA in 2021?  

I didn't get any Form 8889 in my HSA trustee (online portal).  Is this something that I need to get from them? Or is this something that TurboTax is going to help me file once I file my 2021 taxes? like it is automatic or do I need to tell TurboTax about it?

[JohnB5677]

You thought that you didn't need to have a Form 8889 to report my HSA contributions? 

Is this something that I need to get from my HSA trustee?

If you didn't make any out of pocket contributions that weren't included on your W-2.  You will not need any other documentation.

You thought that when you file my 2021 taxes through TurboTax, that you just need my employer's W-2 to report that I have contributed to an HSA in 2021?  

Is this something that TurboTax is going to help me file once I file my 2021 taxes? 

Yes, TurboTax will handle this. but we always recommend that you check your return for accuracy.

These are the W-2 codes that you have on your form.

• C — Taxable costs of group-term life insurance over $50,000 (included in W-2 boxes 1,3 (up to Social Security wages base), and box 5.

• D — Elective deferral under a 401(k) cash or arrangement plan. This includes a SIMPLE 401(k) arrangement.

• W — Employer contributions (including amounts the employee elected to contribute using a Section 125 cafeteria plan) to your health savings account (HSA).

• DD — Cost of employer-sponsored health coverage.