Code DD W2 form

Form W-2 Box 12 reports a wide variety of income paid to employees. Since an employee can receive income other than wages and salaries, Box 12 is used for reporting different kinds of income. Although Box 12 amounts usually don’t affect the gross income of an employee, certain types of income must be reported on Form W-2 Box 12. 

One of the most commonly used Box 12 codes is the DD. This code reports the total amount of income paid for employer-sponsored health insurance plan. The amount entered here won’t count towards the gross income of the employee. This is only for informational purposes to let the Internal Revenue Service know that you have an employer-sponsored health coverage plan. 

The Box 12 DD can help you figure out additional tax credits and deductions as the amount is there. If you are covered by an employer-sponsored health insurance, but your employer didn’t report it on the W-2, make sure to ask for corrections. You might have to amend your tax return in the future as it will be an incomplete return.  

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