W-2 Box 12 Code TA — Employer contributions to a Trump account (section 128)
New for tax year 2026 W-2s — employer contributions made under a section 128 Trump account contribution program to the Trump account of an employee or of an employee's dependent. Up to $2,500 a year is excluded from the employee's gross income.
Estimate this deduction: Use the Trump Account Calculator to see exactly how much Box 12 Code TA is worth on your return.
At a glance — Box 12 Code TA
- Box name
- Employer contributions to a Trump account (section 128)
- Reports to
- None directly — an informational code. A properly excluded section 128 contribution is not part of your gross income, so nothing is entered on Form 1040 for it.
- Check against
- Your employer's Trump account contribution program (TACP) enrollment notice and the account statement for your child's (or your own) Trump account, to confirm the total deposited in the year matches the code TA amount.
What Box 12 Code TA means
Code TA is a new W-2 Box 12 code on the tax year 2026 Form W-2 (the one you'll receive in January 2027). The IRS's 2026 General Instructions for Forms W-2 and W-3 say employers use it to report contributions to the Trump account of an employee or of a dependent of an employee that are paid under a section 128 Trump account contribution program. Beginning July 4, 2026, an employer may contribute up to $2,500 a year toward the $5,000 annual contribution limit, and the amount is excluded from the employee's gross income if paid under such a program (IRC §128).
The $2,500 exclusion limit applies per employee, not per child: if an employee has two or more children with Trump accounts, the employer's total for that employee across all of those accounts is still capped at $2,500 for the year (IRS Notice 2025-68). Both the $2,500 and $5,000 figures are indexed for inflation after tax year 2027.
Employer money counts inside the account's overall annual contribution limit, so every dollar your employer contributes leaves less room for family contributions in the same year.
Tax return implications
- A section 128 contribution paid under a qualifying program is excluded from your gross income, so it does not add to the wages in Box 1 and creates no extra income to report on your Form 1040.
- The employer contribution shares the account's $5,000 annual limit with contributions from family and other sources, which lowers what the family can add the same year.
Common pitfalls & things to check
- Code TA is for contributions paid under a section 128 Trump account contribution program. A contribution outside a qualifying program is a different situation and your payroll team should explain how it was reported.
- The code only appears when your employer actually runs a program and contributes. An employer is not required to offer one, so most 2026 W-2s will not show code TA.
FAQ
Do I owe tax on the amount in Box 12 Code TA?
Not if it was paid under a section 128 Trump account contribution program and stays within the $2,500 yearly limit: the IRS says the amount is excluded from the employee's gross income. The code is there for information.
Can my employer put money in my child's Trump account?
Yes. Under section 128 the contribution can go to a Trump account of the employee or of the employee's dependent, as long as it is paid under the employer's Trump account contribution program.
Is the 2026 W-2 the first with code TA?
Yes. Employers can contribute beginning July 4, 2026, and the IRS added code TA to the tax year 2026 Form W-2 for reporting those contributions.
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 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.
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).
Box 12 Code AA — Roth 401(k) contributions
Your designated Roth 401(k) contributions. Already included in Box 1 (taxed now), but qualified distributions in retirement are tax-free.
Box 12 Code BB — Roth 403(b) contributions
Your designated Roth 403(b) contributions. Already included in Box 1 (taxed now); qualified distributions are tax-free.
Box 12 Code TP — Qualified cash tips (OBBBA no tax on tips)
New for tax year 2026 W-2s — total cash tips reported to your employer, used to substantiate the OBBBA qualified tips deduction (up to $25,000, phased out above $150k single / $300k MFJ MAGI, tax years 2025–2028).
Box 12 Code TT — Qualified overtime compensation (OBBBA no tax on overtime)
New for tax year 2026 W-2s — the FLSA overtime premium ('and-a-half' portion of time-and-a-half), used to substantiate the OBBBA qualified overtime deduction (up to $12,500 single / $25,000 MFJ, phased out above $150k/$300k MAGI, tax years 2025–2028).
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 shown for tax year 2025 (returns filed in 2026); 2026 figures included where published.
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