Health Insurance on W-2
The health care law requires certain employers to report the cost of coverage under an employer-sponsored group health plan.
The amount of employer-sponsored health insurance coverage appears in Box 12 of the W-2, and has the code letters “DD” next to it.
Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable or that it needs to be reported on your tax return.
The amount is only for information, and shows the payments made by you and your employer and is not included in the amount shown in Box 1, which is the amount of taxable earnings.
News from Cook & Co. Tax Advisors at 124 South Main Street in Arab, Alabama.
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