Common W2 Box 14 Codes and What They Mean

The Form W-2 is an annual summary of an employee’s earnings and the taxes withheld from their pay. While most boxes on the form are straightforward, Box 14 often causes confusion. This is because it serves as a miscellaneous, non-standardized field where employers can report a variety of financial information, and the descriptions can differ significantly from one company to another.

The Purpose of W-2 Box 14

Box 14 on the Form W-2 functions as an informational, “catch-all” space for employers. It is used to report amounts and descriptions for items that do not have a dedicated box elsewhere on the form. Because the Internal Revenue Service (IRS) does not mandate a standard list of codes for this box, each employer determines what to report here and what abbreviations to use.

This approach is different from other parts of the W-2, such as Box 12. For Box 12, the IRS requires specific single or double-letter codes to report certain types of compensation and benefits. Box 14, however, is for the employer’s discretion, allowing them to communicate additional details to the employee that might be relevant for their records or tax filing purposes.

The information is intended to provide clarity on aspects of an employee’s compensation package that are not otherwise broken down. For example, while Box 1 shows total taxable wages, Box 14 might specify amounts that were deducted from pay for certain benefits or state taxes. This detail helps reconcile gross pay with the final taxable income figure.

Common Box 14 Entries and Their Meanings

Because employers create their own descriptions for Box 14, the labels can sometimes be unclear. However, many companies use common abbreviations for frequently reported items. Understanding these can help decipher the information on your W-2.

State-Mandated Insurance Programs

Many states require employees to contribute to disability and unemployment insurance funds. These mandatory payments are often reported in Box 14. Common codes include SDI or CASDI for State Disability Insurance, and SUI for State Unemployment Insurance. You might also see labels like FLI for Family Leave Insurance or VPDI for Voluntary Plan Disability Insurance.

Union Dues

For employees who are members of a labor union, any dues paid through payroll deduction are frequently listed in Box 14. The description might appear as “Union Dues,” “UD,” or a similar abbreviation. It is a record of post-tax deductions for membership fees.

Health and Wellness Benefits

While the total cost of employer-sponsored health coverage is reported in Box 12 with code DD, Box 14 may be used for other related items. Some employers list the employee’s share of health insurance premiums here. You might also see entries for wellness program benefits or imputed income for domestic partner health benefits, often labeled as “IMP”.

Commuter and Educational Assistance

Employer-provided benefits for commuting or education may also appear in this box. Educational assistance, which can include tuition reimbursement, may be noted as “Educa,” “Tuition,” or another descriptor. Up to $5,250 of educational assistance can be provided to an employee tax-free, and this amount is often reported in Box 14 for informational purposes.

Personal Use of a Company Car (PUCC)

If an employee uses a company-provided vehicle for personal travel, the value of that use is considered a taxable fringe benefit. Employers must calculate this value and include it in the employee’s taxable wages reported in Boxes 1, 3, and 5. To provide a clear breakdown, the amount is often also listed in Box 14 with a label like “PUCC,” “Auto,” or “Vehicle Fringe.”

Other Miscellaneous Entries

A wide range of other items can be found in Box 14. Charitable contributions made through payroll deductions, such as to the United Way, are a common entry. Some retirement plan contributions that are not reported in Box 12, such as certain non-elective employer contributions or payments to specific state and municipal plans, may be listed here. Payments for uniforms, certain non-taxable income, or local taxes like an occupational tax might also be detailed in this section.

Tax Implications of Box 14 Information

The information in Box 14 can have a direct impact on your federal income tax return. The items fall into three categories: those that may be deductible, those that are for information only, and those that represent already-taxed income.

Some amounts reported in Box 14 may be eligible for an itemized deduction on Schedule A of Form 1040. For instance, mandatory contributions to state disability and unemployment insurance funds (SUI/SDI) are treated as state income taxes and can be deducted if you itemize. However, union dues are not deductible on federal income tax returns, though some states may still allow this deduction on state tax returns.

Many entries in Box 14 are purely informational and require no further action on your tax return. For example, health insurance premiums that were deducted on a pre-tax basis have already reduced the taxable wages shown in Box 1 of your W-2. Similarly, non-taxable educational assistance up to the $5,250 limit is reported for your awareness and is not included in your taxable income.

Certain items listed in Box 14 represent taxable income that has already been included in other boxes on your W-2. A common example is the personal use of a company car (PUCC). The value of this fringe benefit is already part of the total income reported in Box 1 (Federal wages), Box 3 (Social Security wages), and Box 5 (Medicare wages), so you do not need to add this income again on your tax return.

Handling Unclear or Incorrect Entries

Given that employers use their own codes and descriptions in Box 14, it is common to encounter an abbreviation that is not immediately clear. You might see vague terms like “MISC,” “OTHER,” or a company-specific acronym. If you do not understand an entry, the most direct path to clarification is to contact your employer.

Your company’s payroll or Human Resources (HR) department is the source for explaining any codes used on your W-2. They maintain the records that correspond to these entries and can provide a detailed breakdown of what each amount represents. It is best to have your W-2 and a recent pay stub on hand when you call, as this can help them locate the relevant information quickly.

If you believe an amount in Box 14 is incorrect, or if any other information on your W-2 appears to be wrong, you should also address this with your employer’s payroll or HR department. You can request a corrected Form W-2, which is known as a Form W-2c. If your employer is unresponsive, the IRS allows you to report the issue. In cases where a corrected form cannot be obtained in time to file, you may use Form 4852, Substitute for Form W-2, based on information from your final pay stub.