W-2 Box 14 Codes Explained: Complete Guide for 2025

When tax season rolls around, employees receive a W-2 form from their employer, summarizing their earnings and tax withholdings. While most people focus on Box 1 (Wages, Tips, and Other Compensation) and Box 2 (Federal Income Tax Withheld), Box 14 is often overlooked. However, it can contain crucial information that impacts your tax filing. If you’ve ever wondered what those cryptic entries mean or how they impact your taxes, you’re not alone.

At NJCPA USA, Accountants and Advisors in NY USA, we’re here to simplify the complexities of tax forms. In this guide, we’ll break down everything you need to know about W-2 Box 14 codes, from their meanings to how they affect your tax return. Let’s dive in!

What is W-2 Box 14?

The W-2 form is a critical document that summarizes your annual earnings and tax withholdings. Box 14 is a special section where employers report additional information that doesn’t fit into other boxes. Unlike other sections of the W-2, Box 14 is not standardized by the IRS, meaning employers can use it to report various types of compensation, benefits, or deductions.

Common items reported in Box 14 include:

Union dues
State-specific deductions (e.g., disability insurance)
Employer-provided benefits
Miscellaneous items

Understanding Box 14 is essential because it provides details that can influence your taxable income and tax liability. Whether it’s union dues or state-specific deductions, the information in Box 14 ensures your tax return is accurate and complete.

W-2 box 14 codes list

Below is a list of some of the most common codes you might find in Box 14 of your W-2 form. Each code is accompanied by a brief explanation to help you understand what it represents.

Code	Description
AA	Designated Roth contributions under a section 401(k) plan
BB	Designated Roth contributions under a section 403(b) plan
CC	Designated Roth contributions under a section 457(b) plan
DD	Cost of employer-sponsored health coverage
EE	After-tax contributions to a Roth 401(k) plan
FF	After-tax contributions to a Roth 403(b) plan
GG	After-tax contributions to a Roth 457(b) plan
HH	Aggregate deferrals under section 83(i) elections
PP	Payments under a section 457(b) plan
QQ	Nontaxable combat pay
RR	Employer contributions to a health savings account (HSA)
SS	Employer contributions to an Archer MSA
TT	Employer-provided adoption benefits
UU	Contributions to a section 529 college savings plan
VV	Income from the exercise of nonstatutory stock options
WW	Employer contributions to a health reimbursement arrangement
XX	Income from the exercise of incentive stock options
YY	Section 409A income from nonqualified deferred compensation
ZZ	Section 409A income from qualified deferred compensation

Understanding W-2 Box 14 Codes

Box 14 contains a variety of entries, often represented by codes or descriptions. While the IRS doesn’t standardize these codes, some common ones are widely used. Below is a comprehensive table summarizing the most common Box 14 entries and their meanings:

Code/Description	Meaning
Union Dues	Amounts paid to a union or professional organization.
State Disability	State-specific disability insurance premiums (e.g., California SDI).
Other	Miscellaneous employer-reported items (e.g., educational assistance).
Code K	Union dues or other labor-related expenses.
Code Y	Employer contributions to a Health Savings Account (HSA).
Code 6	State disability insurance taxes.
Code V	Income from the exercise of nonstatutory stock options.

Why These Entries Matter:

Each entry in Box 14 represents a specific type of income, benefit, or deduction that can impact your taxes. For example, union dues may be deductible, while state disability insurance premiums are often required by law.

How to Use W-2 Box 14 Information

When preparing your tax return, the information in Box 14 plays a crucial role. Here’s how to use it effectively:

Identify the Entries: Review the descriptions or codes in Box 14 and refer to IRS guidelines or this guide to understand their meanings.
Report Accurately: Enter the corresponding amounts on your tax return as required. For example, union dues should be reported on Schedule A (Itemized Deductions).
Check for Deductions: Some entries, like union dues or state disability insurance, may qualify for tax deductions. Ensure you claim these to reduce your taxable income.

At NJCPA USA, Accountants and Advisors in NY USA, we recommend double-checking your W-2 to avoid errors that could lead to IRS inquiries.

Common Mistakes to Avoid

Even seasoned taxpayers can make mistakes when dealing with Box 14. Here are some common pitfalls to watch out for:

Ignoring Box 14: Overlooking this section can lead to inaccurate tax filings.
Misreporting Amounts: Entering incorrect figures can result in overpaying or underpaying your taxes.
Missing Deductions: Failing to claim deductions for union dues or state-specific expenses can increase your tax liability.

By carefully reviewing your W-2 and understanding Box 14, you can avoid these costly errors.

Need help with your W-2 Schedule a consultation with NJCPA USA today!

Why W-2 Box 14 Matters

Box 14 isn’t just a collection of random entries—it’s a critical part of your tax return. Here’s why it matters:

Tax Deductions: Entries like union dues or state disability insurance may qualify for deductions, reducing your taxable income.
Accurate Reporting: Properly reporting Box 14 information ensures compliance with IRS regulations.
Maximizing Benefits: Understanding Box 14 helps you take advantage of tax-saving opportunities.

At NJCPA USA, Accountants and Advisors in NY USA, we help clients navigate these complexities to optimize their tax outcomes.

W-2 Box 14 Codes & Their Meanings

Since Box 14 isn't standardized, employers may use different codes to describe entries. Here are some commonly used W-2 Box 14 codes and their meanings:

Code	Description
SDI	State Disability Insurance Tax
K	401(k) After-Tax Contributions
DCB	Dependent Care Benefits
EDU	Educational Assistance
FSA	Flexible Spending Account Contributions
T	Employer-Paid Tuition
U	Union Dues
W	Health Savings Account (HSA) Contributions

These codes vary between employers, so always check with your HR department if you’re unsure.

What Should You Do If Box 14 Information Is Incorrect?

Errors in Box 14 can cause confusion when filing taxes. If you notice a mistake:

Contact your employer immediately to verify the correct information.
If needed, request a corrected W-2 (Form W-2C).
If you've already filed your return, you may need to amend your tax return (Form 1040-X).

FAQs About W-2 Box 14

1. What is Box 14 on a W-2?

Box 14 reports additional information that doesn’t fit into other boxes, such as union dues, state-specific deductions, or employer-provided benefits.

2. Is Box 14 on W-2 taxable?

It depends on the entry. For example, union dues are not taxable but may be deductible, while employer contributions to an HSA are not taxable.

3. What does “Other” mean in Box 14?

“Other” refers to miscellaneous employer-reported items, such as educational assistance or reimbursements.

4. What is Code K in Box 14?

Code K typically represents union dues or other labor-related expenses.

5. How do I report Box 14 information on my tax return?

Refer to the IRS instructions for your tax form (e.g., Form 1040) to determine where to report each Box 14 amount.

Final Thoughts

Understanding W-2 Box 14 codes is essential for accurate tax filing and maximizing your tax benefits. Whether you’re dealing with union dues, state-specific deductions, or employer-provided benefits, the information in Box 14 ensures your tax return is complete and compliant.

At NJCPA USA, Accountants and Advisors in NY USA, we specialize in helping individuals and businesses navigate the complexities of tax preparation. If you have questions about your W-2 or need assistance with your taxes, contact us today for expert guidance.