On my W2, I had $xx,xxx listed in both my Federal Wages as well as my SS and Medicare wages. My tax software running it's data checks said it was unusual since I had values in Box 12 (of which, I had multiple, specifically: codes AA, C and DD).

Did my employer miscalculate my federal wages on my W2?

  • 1
    Are those all of the codes you have? None of those reduce your taxable income AFAIK. – D Stanley Feb 19 at 19:27
  • edited for clarity. Those are the only box 12 codes. – Andy_Vulhop Feb 19 at 19:35

The ;codes you mention (AA, C and DD mean the following):

AA—Designated Roth contributions under a section 401(k)plan

C—Taxable cost of group-term life insurance over $50,000(included in boxes 1, 3 (up to the social security wage base), and 5)

DD—Cost of employer-sponsored health coverage. The amount reported with code DD is not taxable.

The Code AA doesn't change box 1,3 or 5. The code C adds the same amount to box 1,3,and 5. unless you are above the social security maximum

Code DD doesn't impact box 1,3,5

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