Health Insurance on W-2 (ASL) - YouTube video text script
Hi, I’m Patrick and I work for the IRS.
You may see a new number on your W-2.
You know, the form you get after the end of the year that tells you how much you’ve earned and how much tax you had withheld from your paycheck.
That new number is for the cost of employer-provided health care coverage.
You’ll find it on the W-2 in Box 12, under Code DD.
Any amount you see under this special code is still not taxable.
As more employers report this cost on the W-2, we want to assure you that although this information is now reported on your W-2, other things remain the same.
In other words, health coverage that was tax-free in the past is still tax-free now.
So you may be wondering, then why is this number on my W-2?
Well, it’s there for informational purposes, to show employees the value of their health care benefits.
Not everyone will have this information on their W-2 right away because this reporting requirement is still optional for many smaller employers.
But if it is on your W-2, remember, the bottom line is, the amount reported with Code DD is not taxable.
To learn more, go to IRS.gov