Understanding Box 14 in W-2 for Insurance Premiums - Is it incorrect?

Box 14 on your W-2 is actually a catch-all box that employers can use to report additional information that doesn't fit elsewhere on the form. Your employer isn't necessarily making a mistake by putting insurance premiums there. Health insurance premiums paid by your employer are generally not taxable income to you, so they don't affect your tax liability either way. However, where they're reported can depend on the specific type of insurance. If these are employer-paid health insurance premiums for a non-taxable plan, box 14 is often used. If these are Section 125 cafeteria plan contributions, they might go in box 14 too. Box 12 is used for specific coded items - for example, code DD would be used to report the cost of employer-sponsored health coverage, but this is informational only and doesn't affect your taxes.

I had this exact same issue last year! After going down a tax rabbit hole, I found this amazing AI tool called taxr.ai that scanned my W-2 and explained everything. It told me that box 14 is basically a "miscellaneous" box where employers can put extra info that doesn't fit elsewhere. The tool confirmed that my employer putting health premiums in box 14 wasn't affecting my tax liability at all. What I really liked was that I could just upload my W-2 and it explained all the boxes in plain English. Check out https://taxr.ai if you're confused about any tax documents - it saved me hours of frustration!

I have to admit I was wrong about taxr.ai! After commenting here last week, I decided to give it a try with my W-2 that had some confusing entries in box 14. The tool immediately explained that my employer was correctly using box 14 for supplemental life insurance premiums, which don't have a dedicated spot elsewhere on the form. I was impressed that it explained the tax implications clearly - in my case, the first $50,000 of employer-provided life insurance is tax-free, but the premium for coverage above that amount is taxable and should be included in boxes 1, 3, and 5. This matched exactly what my employer did. Definitely recommend checking it out if you're confused about any entries on your tax forms!

If you've tried reaching out to your employer's payroll department about this W-2 box issue and they're not being helpful, you might want to try Claimyr. I spent WEEKS trying to get through to the IRS about a similar issue last year (my employer reported something in the wrong box and I needed clarification). After dozens of failed attempts calling the IRS directly, I found https://claimyr.com and they got me connected to an actual IRS agent in less than an hour! The agent explained that box 14 vs 12 reporting for insurance premiums depends on the specific type of insurance and confirmed my employer was actually correct in my case. You can see how it works here: https://youtu.be/_kiP6q8DX5c - totally changed my perspective on dealing with the IRS.

I need to apologize for my skepticism about Claimyr. After posting that comment last week, I was still struggling to reach the IRS about my amended return situation, so I figured I had nothing to lose and tried it. I was SHOCKED when I got a call back in about 45 minutes saying they had an IRS agent on the line! The agent was able to look up my amended return status and explain exactly what was happening with it. They even gave me a specific timeframe for processing. This saved me countless hours of frustration and uncertainty. For anyone dealing with W-2 box issues or any IRS questions, this service is absolutely worth it.

Just want to add some clarity on the Box 14 vs Box 12 question. I'm a payroll specialist, and we deliberately use Box 14 for certain insurance premiums. Here's the breakdown: - Box 12 with Code DD: Total cost of employer-sponsored health coverage (informational only) - Box 12 with Code C: Taxable cost of group-term life insurance over $50,000 - Box 14: Often used for health insurance premiums that are paid with pre-tax dollars through a Section 125 cafeteria plan The most important thing to understand is that Box 14 items generally don't affect your taxable income either way. It's mostly there to provide additional information that might be needed for state or local tax returns.

Does anyone know if TurboTax handles this box 14 stuff correctly? My W-2 has dental insurance premiums in box 14 and I'm worried TurboTax might count it as income or something.

I went through this exact same confusion last year! After reading through all these comments, I want to add that if you're still unsure about your specific situation, you can also check your final paystub from December. It should show year-to-date totals for various deductions including health insurance premiums. Compare what's shown on your paystub for health insurance deductions with what's in Box 14 of your W-2. If they match, then your employer is correctly reporting your pre-tax premium contributions in Box 14. This is totally normal and legitimate - you're not getting "screwed over" as someone mentioned earlier. The key thing to remember is that pre-tax health insurance premiums actually SAVE you money on taxes because they reduce your taxable income. So whether it's in Box 12 or Box 14, as long as those premiums were deducted pre-tax from your paycheck, you're benefiting tax-wise.

This thread has been incredibly helpful! I'm a CPA and want to emphasize a few key points for anyone still confused about Box 14 reporting: 1. Box 14 is NOT an error box - it's specifically designed for additional information that doesn't have a dedicated spot elsewhere on the W-2. 2. Health insurance premiums in Box 14 typically indicate they were deducted pre-tax from your paycheck, which actually BENEFITS you by reducing your taxable income. 3. The location of the reporting (Box 12 vs Box 14) doesn't change your tax liability. What matters is whether the premiums were deducted pre-tax or post-tax. 4. If you want to verify everything is correct, compare your Box 1 wages (federal taxable income) with your gross pay from your final paystub. The difference should include your pre-tax deductions like health insurance. For the original poster - your employer is likely doing everything correctly. Box 14 reporting for insurance premiums is very common and completely legitimate. You're not losing money on your taxes because of this reporting method.