What does Box 14 code 125PL mean on my W-2 form?

Box 14 on your W-2 is basically a catch-all section where employers can report additional information that doesn't fit elsewhere on the form. These codes aren't standardized by the IRS - they're created by your employer or their payroll system. The "125" in your codes likely refers to Section 125 of the tax code, which deals with cafeteria plans (pre-tax benefits). "125PL" is probably a Section 125 Premium Plan, meaning pre-tax health insurance premiums. "125IN" could be insurance-related costs that are also pre-tax. "RET" almost certainly refers to retirement contributions, which matches with the larger amount you're seeing. These amounts are generally already factored into your W-2's Box 1 wages (meaning they've already reduced your taxable income), so you typically don't need to report them separately unless you're itemizing for specific state tax purposes.

I had the exact same issue when filing this year! The 125PL code confused me too, but I found out it was related to my pre-tax health insurance premiums. I was going in circles trying to figure out what to do with these codes until I found this awesome tool called taxr.ai (https://taxr.ai) that helped me decode everything on my W-2. I uploaded a picture of my W-2 and it explained all the codes in Box 14 specifically for my employer. Turns out the 125PL was definitely NOT union dues in my case - it was my health plan premiums paid with pre-tax dollars. The tool also explained that I didn't need to report these separately since they were already factored into my taxable wages in Box 1.

Just wanted to follow up - I tried taxr.ai after seeing this thread and it was super helpful! I uploaded my W-2 which had similar codes but different letters (mine had 125HC and 125DC) and it explained that these were health care and dependent care FSA contributions. The tool even caught that my employer had made a small error in how they reported my state income tax withholding by comparing it to the federal tax calculations. Saved me from potentially having issues with my state return! It's nice having something explain these forms in plain English instead of tax jargon.

If you're still having trouble understanding your W-2 codes or getting conflicting information about them, you might need to contact your employer's payroll department directly. I spent WEEKS trying to get someone on the phone at my company's outsourced payroll provider last year for a similar issue. After multiple failed attempts, I discovered https://claimyr.com which helped me actually reach a human at my company's payroll provider. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was completely surprised when I got through to someone in under 15 minutes after trying for days on my own. The payroll specialist confirmed that my 125PL code was specifically for my premium health insurance plan contribution and not something I needed to report separately on my taxes.

Well I have to eat my words. After seeing this thread, I decided to try Claimyr to reach the IRS about a question on my 125PL codes since my employer wasn't being helpful. I honestly expected it to be useless, but I got connected to an actual IRS representative in about 40 minutes without having to sit by my phone or listen to that horrible hold music. The agent confirmed what others here said - these Section 125 codes are just informational for most people. Mine specifically was for my health insurance premium paid pre-tax. She also explained that the "RET" code is showing retirement contributions but those are already reflected elsewhere on my taxes. I'm still surprised this service actually worked. Saved me from what would have been hours of frustration.

Just wanted to add something no one else mentioned - depending on your state, some of these Box 14 items MIGHT matter for your state taxes even if they don't for federal. In my state (NY), I have to report certain pre-tax deductions that aren't taxable federally but are taxable at the state level. The best thing to do is check your pay stubs which usually have better descriptions of these deductions than the cryptic codes on W-2s. Mine showed "125PL" as "Premium Plan Health Insurance" which made it much clearer what I was looking at.

My HR department told me that 125PL stands for "Section 125 Plan" and covers all the pre-tax deductions for benefits like health insurance, dental, vision, etc. The 125IN might be for disability insurance premiums maybe? These codes can vary by employer so it might be worth asking your HR or payroll department for a full list of their specific W-2 codes and what they mean.

I can help clarify these Box 14 codes for you! You're right to be confused - these employer-specific codes can be tricky. **125PL ($1,495.32)** - This is almost certainly your health insurance premiums paid through a Section 125 cafeteria plan (pre-tax). The "PL" likely stands for "Premium" or "Plan." This is NOT union dues - your tax software was probably just guessing based on common deductions. **125IN ($37.92)** - This is probably insurance-related as well, possibly supplemental insurance like life, disability, or vision coverage, also paid pre-tax through your Section 125 plan. **RET ($3,067.61)** - This represents your retirement plan contributions (401k, 403b, etc.). **Important:** All of these amounts have already been subtracted from your taxable wages shown in Box 1 of your W-2. You typically don't need to enter them separately when filing your taxes - they're just informational to show you what pre-tax deductions were taken. However, double-check your pay stubs for clearer descriptions of these codes, and if you're still unsure, contact your HR/payroll department for a definitive explanation of your employer's specific Box 14 codes. Better safe than sorry when it comes to taxes!