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BUG: Entering DD in box 12c is generating taxable income

Forum|Forum|5 years ago
February 9, 2021
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I have an entry on line 12c of my W-2 with the letter code of "DD".

When I enter an amount, it reduces my refund so I know it is counting it as income.

This should not be the case.

Please advise when this bug is fixed so I can download the update.

Thank you

W-2

Best answer by pdkjr20

When I enter it in the W-2 it immediately significantly decreases my refund. I assume if that is the only thing I have done...that it included it in income

I figured out what is happening. Its a bug.

I entered the DD in the Step by Step interface.

However, when I looked at the W-2 form, it was coded as W.

I used the drop down menu, to change it in the W-2 form and it corrected the problem.

RayW7

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.