W2 Box 14 Descriptions: What Do They Mean?

The Form W-2 can be confusing, and Box 14 often raises questions due to its varied entries. This section is a “catch-all” for employers to report financial items without a specific, dedicated box elsewhere on the form. Because the Internal Revenue Service (IRS) does not mandate a uniform list of codes, the information presented can differ greatly from one employer to another.

An employer might use Box 14 to report anything from state-mandated insurance to charitable donations made through payroll deduction. The descriptions are created by the employer and can sometimes be cryptic abbreviations. This flexibility conveys important payroll details, but it places the responsibility on the employee to understand what these entries mean for their tax situation.

Common Box 14 Categories Explained

State-Mandated Payroll Taxes

Many employees will find amounts in Box 14 related to state-level programs. These are required withholdings in certain states to fund benefits like State Disability Insurance (SDI) or Paid Family Leave (PFL). These programs provide wage replacement for non-work-related illness, injury, or family care needs. The descriptions for these items can vary, with employers using abbreviations like “SDI,” “CASDI,” or “PFL,” and the amount shown is the total withheld from your paychecks for these state programs.

Voluntary Deductions

Box 14 is also frequently used to report voluntary deductions an employee has authorized to be taken from their paycheck. For instance, if you are a member of a labor union, your union dues are often reported here. Another common voluntary deduction is for charitable contributions made through an employer-sponsored giving campaign. The annual total of those donations may be listed in Box 14.

Employer-Provided Benefits

Employers may use Box 14 to report the value of certain fringe benefits they provide. One frequent entry is for employer-provided educational assistance, reflecting the financial assistance you received for continuing education. Another example is the personal use of a company car (PUCC). If an employer provides you with a vehicle for personal travel, the value of that use is a taxable fringe benefit that is often detailed in Box 14 for informational purposes before being added to your total wages in Box 1.

Retirement Plan Contributions

While most pre-tax retirement contributions are in Box 12, Box 14 may be used for other types of retirement plan information, like after-tax contributions to a pension plan. These are contributions you make from your net pay. Railroad employers have specific reporting requirements and may use Box 14 to show employee contributions to their retirement system, known as the Railroad Retirement Tax Act (RRTA). These entries might be labeled “Tier I” or “Tier II” tax, representing the employee’s share of contributions to the fund.

Tax Treatment of Box 14 Items

The taxability of items in Box 14 depends on what the item represents. Some entries lead to deductions, while others are informational. Amounts for state-mandated disability insurance or paid family leave taxes are deductible as state taxes on Schedule A of Form 1040 if you itemize.

Charitable contributions made via payroll deduction can also be deducted on Schedule A. However, union dues are not deductible on federal tax returns, as a tax law change suspended the deduction for most unreimbursed employee expenses through 2025. Some states may still allow a deduction for union dues on state returns.

Some Box 14 entries represent non-taxable benefits, like employer-paid tuition assistance up to the annual IRS limit. If the benefit is under this threshold, the amount is for your information only. Other items, like the personal use of a company car, are taxable and are already included in the wage figures in Boxes 1, 3, and 5.

Action Steps for Unidentified Codes

Discovering an unfamiliar code in Box 14 can be confusing. Since employers create their own descriptions, some may use internal shorthand that is not universally understood. The most direct way to decipher an unknown Box 14 entry is to contact your employer. The payroll or Human Resources (HR) department is responsible for issuing W-2s and can provide a clear explanation of the entry and its tax treatment.