Health Insurance Cost on W-2 – Code DD
Employers are required to report the cost of an employee’s health care benefits in Box 12 of Form W-2 Wage and Tax Statement, using code “DD” to identify the amount. This amount is reported for informational purposes only and is NOT taxable. It is included in Box 12 in order to provide comparable consumer information on the cost of health care coverage. In general, the amount reported will include the portion paid by the employer as well as the portion paid by the employee. It will not include the amount of any salary reduction contributions.
If you need help reporting Form W-2 in the TaxAct program, go to our Form W-2 – Entering in Program FAQ.
See the Patient Protection and Affordable Care Act for more information about ACA
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.
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