W-2 Box 12 Code DD — Cost of employer-sponsored health coverage
The total cost (employer + employee share) of your employer-sponsored group health coverage. Informational only — does not affect your tax.
At a glance — Box 12 Code DD
- Box name
- Cost of employer-sponsored health coverage
- Reports to
- None — informational only.
- Check against
- Your year-end benefits statement or HR summary of group health premiums.
What Box 12 Code DD means
Code DD reports the total cost of employer-sponsored group health coverage — both what your employer paid and what you paid via pre-tax payroll deductions. It was added by the ACA to give employees visibility into the full cost of employer-provided health coverage.
Code DD is strictly informational. It does NOT reduce any other W-2 box, it is NOT taxable, and it is NOT deductible. It is not the same as your HSA contributions (code W), your FSA contributions (already reducing Box 1), or the premium tax credit on Form 8962.
Tax return implications
- Zero tax impact on your return.
- May be used by the IRS to verify ACA employer mandate compliance.
- Helps you compare your total cost of employer health coverage to ACA marketplace alternatives.
Common pitfalls & things to check
- Code DD is not the cost of YOUR coverage that you paid — it is the total (employer + employee share) for your enrollment tier. Don't treat it as something you can deduct on Schedule A.
- Only employers with 250+ W-2s are required to report code DD. Smaller employers may leave it blank even if they provide health coverage.
- Dental-only or vision-only coverage may be excluded from code DD under IRS safe harbors.
FAQ
Is Box 12 DD taxable?
No. Code DD is informational only — it does not change your Box 1 wages, does not reduce your refund, and does not need to be entered anywhere on Form 1040.
Why is my Box 12 DD so high?
It's the total cost your employer paid for your group health coverage plus any pre-tax premiums you paid. For family coverage this often exceeds $25,000/year — most of which is employer-paid.
Related W-2 boxes
Box 12 — Codes (401(k), HSA, health coverage, ISO, and more)
Up to four labeled amounts (12a–12d) using IRS codes. Common codes: D (401(k) elective deferral), DD (employer health coverage cost), W (employer + employee HSA contributions), AA (Roth 401(k)).
Box 12 Code D — Elective deferrals to a 401(k) plan
Your traditional (pre-tax) 401(k) elective deferrals. Reduces Box 1 dollar-for-dollar, up to the annual §402(g) elective deferral limit (higher with age-50 catch-up and SECURE 2.0 ages-60–63 super-catch-up).
Box 12 Code E — Elective deferrals to a 403(b) plan
Your traditional (pre-tax) 403(b) elective deferrals. Reduces Box 1 up to the annual §402(g) limit, with a special 15-year catch-up for long-tenured employees of certain nonprofits.
Box 12 Code W — Employer and employee HSA contributions
Total Health Savings Account contributions — both employer and employee (via pre-tax payroll). Capped at the §223 annual HSA limit for your HDHP coverage tier, plus the $1,000 age-55+ catch-up under §223(b)(3)(B)(ii).
Reconciling your W-2 at tax time? Use the paycheck calculator to verify expected federal, Social Security, and Medicare withholdings on your salary, and the federal income tax calculator to estimate your refund or balance owing before you file.
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Sources
W-2 box definitions per IRS General Instructions for Forms W-2 and W-3 and IRC §6051. Rates and thresholds current for tax year 2025 (file by April 15, 2026); 2026 figures included where published.