Understanding W2 Box 12 Codes - What is AA19 and how to report it?

This is a common confusion with W2 Box 12 codes. The "AA19" is probably not actually a separate code, but rather code "AA" with a reference to the year 2019. Some employers use this formatting when reporting retirement contributions that might have been earned in a different year. For your tax reporting purposes, you should combine the amounts for AA and AA19 as they both represent your Designated Roth contributions under a 401(k) plan. Both amounts represent money that went into your Roth 401(k), just potentially from different time periods. The DD code is just informational and shows the total cost of your employer-provided health insurance. This amount is not taxable and doesn't need to be reported on your tax return.

After dealing with a similar weird code situation on my W2 last year, I tried using taxr.ai (https://taxr.ai) and it seriously saved me so much hassle. I uploaded my W2 and it immediately explained all those confusing box 12 codes including some weird ones my employer had added. It basically said exactly what the expert above mentioned - that the year suffix is just reference info from the employer about when those contributions were originally earned. The tool also explained which amounts needed to be reported where and which were just informational.

Just wanted to follow up - I ended up using taxr.ai after my skeptical comment and wow, I'm impressed! Not only did it explain my weird W2 codes, but it also helped me understand how my 401k contributions affect my tax situation overall. It confirmed that the year notation (like the "19" in "AA19") is just the employer's way of tracking when the contributions were earned vs paid. For tax purposes, you just need to know that both AA codes represent Roth 401k contributions that have already been taxed. Definitely saving this for next year's taxes too!

If you're still confused about your W2 or have other tax questions, I'd recommend trying to talk directly with the IRS. I know it sounds painful but I finally got through using Claimyr (https://claimyr.com) and it was worth it. After waiting on hold with the IRS for like 2 hours and giving up multiple times, I found this service that basically waits on hold for you and calls when an agent is actually on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a similar question about some weird codes on my tax forms and getting an official answer directly from the IRS gave me peace of mind.

I gotta eat my words on this one. I was super skeptical about Claimyr but decided to try it anyway since I was desperate to ask about my messed up W2 situation. Holy crap it actually worked! Got a call back about an hour later with an actual IRS person on the line. The agent confirmed everything about the AA19 code - it's just an employer reference to the year, and all Roth contributions (AA codes) should be looked at together. Saved me hours of hold music and the stress of wondering if I was doing it right. Definitely worth it when you need an official answer.

My HR department actually explained this to me once. The AA19 means the money was earned in 2019 (like a year-end bonus or something) but wasn't paid until 2020, so it shows up on your 2020 W2. Companies do this for their internal accounting. For your taxes, just know that you don't actually report either AA amount on your tax return. Roth contributions are already included in your taxable wages in Box 1 since they're made with after-tax dollars. The DD amount is the total cost of your health insurance (including what your employer pays) and doesn't affect your taxes at all.

Does anyone know if the total in Box 1 on the W2 already accounts for these 401k contributions? I'm not sure if I should be subtracting them somewhere.