Box 12 codes A: Uncollected social security or RRTA tax on tips reported to your employer. AA: Designated Roth contributions under a section 401(k) plan. B: Uncollected Medicare tax on tips reported to your employer (but not Additional Medicare Tax) BB: Designated Roth contributions under a section 403(b) plan.

D. Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.

Line 12a reports the total amount of the distribution and line 12b reports the taxable portion, if any. Next to line 12b, write “rollover.” If you’re rolling the money from one tax-deferred account to another, such as from a 401(k) to another 401(k) or traditional IRA, the entire rollover is tax-free.

Individuals (employees) do not have to report the cost of coverage under an employer-sponsored group health plan that may be shown on their Form W-2, Wage and Tax Statement, in Box 12, using Code DD. This reporting is for informational purposes only, to show employees the value of their health care benefits.

No – While it’s important to enter all the information on your W-2, you don’t need to file an amended return. The items listed in Box 12 of your W-2 are informational and are covered elsewhere on the form.

The amount shown on your W-2, Box 12, using Code DD, represents the of the cost of pre-tax employer-sponsored health coverage, and is for your information only. The amount reported with Code DD is not taxable, but neither can it be claimed as a tax deduction (medical expense) by an individual taxpayer.

Box 12 amounts with the code DD signify the total cost of what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only — they don’t affect the numbers in your tax return.

The W2 Box 12 codes are:

1. A — Uncollected Social Security or RRTA tax on tips.
2. B — Uncollected Medicare tax on tips.
3. C — Taxable costs of group-term life insurance over $50,000 (included in W-2 boxes 1,3 (up to Social Security wages base), and box 5.
4. D — Elective deferral under a 401(k) cash or arrangement plan.

Is the amount on W-2 Box 12a (Code DD) deductable under medical expenses? No, this is not deductible. It’s the amount your Employer paid, from your pre-tax Gross compensation, for your health care coverage.

No. Box 12 amounts with the code DD signify the total cost of what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only – they won’t affect the numbers in your tax return.

Are these contributions deductible? 401k is subtracted from your federal wages by the payroll dept. You can’t deduct it twice.

In general, each employer providing coverage will have to report the prorated cost on the employee’s W-2. If the employee is terminated, the employer can also include the COBRA payment amounts paid by the employee after termination.

Many employers are required to report the cost of an employee’s health care benefits in Box 12 of Form W-2, using Code DD to identify the amount. This amount is reported for informational purposes only and is NOT taxable.

Premiums for COBRA insurance are tax deductible, as they are paid entirely by you on an after-tax basis. If you buy medical coverage through an insurance marketplace, then premiums would be tax deductible as a medical expense.

(California passed a similar law known as “Cal-COBRA.”) Under COBRA, the group plan health insurance plan made available to terminated workers provides the exact same benefits as they would receive if they were still a member of the group, except that the employees have to pay the employer’s cost of providing the …

If your boss fires you, you quit, or there’s a mass layoff, you’re eligible for COBRA. You also qualify if your hours are reduced so that you don’t qualify for regular coverage. About the only thing that disqualifies you is if your employer fires you for gross misconduct. In that case, you’re not covered by COBRA.

How to apply for COBRA. The employer must notify the health plan within 30 days when you lose or quit your job, die or become entitled to Medicare. Your health insurance plan will send you information about how to extend coverage via COBRA. You have 60 days to decide whether to sign up for COBRA.

COBRA is a convenient option for retaining health insurance if you lose your employer-sponsored health benefits, and sometimes it is also the best option. However, the cost is often high and the plan is not always the best one to fit an individual’s or a family’s needs.

So which one is better? Typically ACA insurance is more affordable than COBRA insurance because you can be eligible for federal ACA subsidies, depending on your income. COBRA costs an average of $599 per month.

The biggest downside to COBRA is that even though continued coverage is guaranteed, it usually means the employer will no longer be paying your insurance premiums. In some case, you may have already been paying the premium, but without a job or with a loss of income, this can still be a financial burden.

With COBRA insurance, you’re on the hook for the whole thing. That means you could be paying average monthly premiums of $569 to continue your individual coverage or $1,595 for family coverage—maybe more!

Is COBRA cheaper than individual insurance? COBRA health insurance is usually more expensive than individual insurance, especially if you qualify for ACA plan subsidies. ACA subsidies reduce the cost of ACA plans. The subsidies are only eligible for ACA plans.

Who pays for COBRA coverage? The employee generally pays the full cost of the insurance premiums. In fact, the law allows the employer to charge 102 percent of the premium, and to keep the 2 percent to cover your administrative costs.

You’ll have 60 days to enroll in COBRA — or another health plan — once your benefits end. But keep in mind that delaying enrollment won’t save you money. COBRA is always retroactive to the day after your previous coverage ends, and you’ll need to pay your premiums for that period too.

COBRA is costly as it is calculated by adding what your employer has been contributing toward your premiums to what you’ve been paying in premiums, and then adding the service charge on top of that.

You would be covered until the end of the month when you leave, then COBRA can be done retroactively up to 60 days.

60 days

If you are making payment for your COBRA health insurance continuation coverage, than you will be making payments for the full month. When you make your payments it should cover you for the whole month. Generally, there are no refunds.

How to get COBRA health insurance after leaving your job

1. Leave a company with 20 or more employees, or have your hours reduced.
2. Wait for a letter in the mail.
3. Elect health coverage within 60 days.
4. Make a payment within 45 days.

30 days