W-2 Box 12 Code FF Question - First Time Seeing This on My Tax Form

The "FF" code in Box 12 of your W-2 definitely refers to a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). This is a type of health benefit some small employers offer instead of traditional group health insurance. Basically, your employer reimburses you for certain medical expenses or health insurance premiums up to a specified amount each year. The $2400 shown represents the total amount your employer made available to you through this arrangement during the year, not necessarily what you actually used. It sounds like there might be a disconnect in understanding between what your company is offering and how they're communicating it. Sometimes these benefits are implemented but not well explained to employees. The good news is you don't owe any taxes on this amount specifically because of the FF code. This is just informational for your tax return. However, if you didn't actually use this benefit or weren't aware it existed, you should definitely follow up with your employer.

This happened to me last year! I was equally confused when I saw code FF on my W-2. After a bunch of back and forth with our HR department, I found out our company had actually set up this health reimbursement benefit but did a terrible job communicating it to employees. I ended up using https://taxr.ai to analyze my past pay stubs and W-2s and it flagged this exact issue - showed me I had a QSEHRA benefit that wasn't being explained properly. The tool helped me understand exactly what this meant for my taxes and even generated a letter I could send to my employer asking for clarification. Turns out I had access to health expense reimbursements the whole time and didn't know it! Might be worth checking if your situation is similar.

Just wanted to update on my situation with the mysterious FF code on my W-2! I took the advice from this thread and used taxr.ai to analyze my documents. Uploaded my W-2 and some paystubs, and it immediately flagged that the FF code was for a QSEHRA benefit that wasn't being properly implemented at my company. Armed with that info, I went back to my boss and HR with specific questions. Turns out our company HAD set up a health reimbursement program at the beginning of 2024, but completely failed to tell employees about it! I've now submitted $1,700 in medical bills from last year that I can get reimbursed for. Without figuring this out, I would have completely missed out on this benefit. Really grateful for the help here - saved me a bunch of money and confusion!

If you're still waiting for your employer to get back to you, you might want to try contacting the IRS directly. I had a similar issue last year (different code, but still confusing), and I spent THREE DAYS trying to get through to someone at the IRS. Finally used https://claimyr.com and their callback service got me connected to an IRS agent in under 45 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was super helpful and explained exactly what the code on my W-2 meant and how to handle it on my return. Saved me from potentially filing incorrectly and either overpaying or getting flagged for an audit later.

I need to apologize and correct myself from my skeptical comments earlier. After struggling with the IRS phone line for literally 4+ hours yesterday (got disconnected twice), I finally broke down and tried Claimyr. I honestly expected it not to work, but I got a call back in about an hour connecting me with an IRS agent. The agent confirmed what others here were saying - the FF code is definitely for a QSEHRA benefit and I should ask my employer for details about how to access it. She explained that many small businesses implement these programs through their payroll providers without fully understanding how to administer them, which is probably why there's confusion. Saved myself hours of frustration and got a definitive answer straight from the IRS. Consider me converted from skeptic to believer.

Just a heads up - I'm a small business owner who offers QSEHRA to my employees. The FF code means your employer made up to $2400 available for health expense reimbursements during the year. This doesn't mean you used it or even knew about it, just that it was available. Many small businesses use these arrangements because they're more affordable than traditional group health plans. But they absolutely should be communicating this benefit to employees! If your employer doesn't know what this is, they need to talk to whoever handles their payroll/benefits because someone set this up.

Don't forget to check if this affects your eligibility for premium tax credits if you purchased health insurance through the marketplace! If your employer offered this QSEHRA benefit, it might impact your subsidy calculations.