W-2 Box 14 Codes: What Each Entry Means for 2026

TLDR

There is no official list of W-2 box 14 codes. Box 14 is an “Other” box. Your employer types its own short labels, like SDI, UNION, or 414H. So the IRS cannot tell you what an odd label means. On the 2026 form, box 14 is split into box 14a (Other) and box 14b (tipped occupation codes). Starting with 2026 wages, qualified overtime goes in box 12 code TT and cash tips in box 12 code TP, not in box 14. S corp owners: your health insurance must be in box 1. A box 14 line for it is only a note.

You open your W-2 and see box 14. It says “CASDI 1,512.00” or “UNION 640” or “S-CORP HLTH.” Your tax software asks you to pick a category. You have no idea which one fits.

You are not alone. People search for W-2 form box 14 codes because they expect an IRS chart, like the letter codes in box 12. But that chart does not exist. Box 14 is the one place on the form where your employer gets to write its own notes.

That freedom makes box 14 confusing. It also makes it easy to mix up with box 12, which really does use IRS codes. And for 2026, the box itself changed shape, because of the One Big Beautiful Bill Act (OBBBA).

In this guide, you’ll learn:

Understand why box 14 codes are employer-made labels, and how that differs from box 12.
Read the most common box 14 entries, like SDI, union dues, and 414(h).
See what changed on the 2026 W-2: box 14a, box 14b, and the new box 12 codes for overtime and tips.
Know where S corp owner health insurance belongs, and why box 14 is not enough.
Decide what to do with each box 14 line when you file.

#W-2 form box 14 codes are not IRS codes

#What the IRS instructions say

The General Instructions for Forms W-2 and W-3 (2026) describe box 14a this way: you “may also use this box for any other information that you want to give to your employee.” The next words are the key: “Label each item.”

So the label is up to the employer. One payroll company may write “SDI.” Another may write “CA SDI” or “CASDI.” Both mean the same thing. The IRS does not assign or check these labels.

#Box 12 codes vs box 14 labels

This is where most people get tripped up:

Box 12 uses IRS letter codes. Four examples: D is 401(k) deferrals. W is HSA money put in through work, by you or your employer. DD is the cost of health coverage. V is stock option income. Each code has one meaning, set by the IRS.
Box 14 (box 14a on the 2026 form) uses free text your employer picks.

If you see a single capital letter with an amount, it is almost always a box 12 code. If you see a word or short label, it is probably box 14.

Box 12 vs box 14 on Form W-2
	Box 12	Box 14 (14a and 14b in 2026)
Who sets the code	The IRS	Your employer (14a). The IRS sets the 14b codes.
Format	Letters, like D, W, DD, TT	Short labels, like SDI or UNION
Does it change your tax?	Often yes	Usually no. It is mostly information.
Where to look it up	W-2 instructions, box 12 list	Your employer or payroll company

#Why “code V box 14” is usually box 12

A common search is “code V box 14 W2.” Code V is a box 12 code. The W-2 instructions describe code V as income from exercising nonstatutory stock options. That amount is already in your box 1, 3, and 5 wages. If your employer also lists stock option income in box 14, treat it as a note. Do not add it to your income a second time.

#The most common codes in box 14 of a W-2

The W-2 instructions list examples of what employers may put in box 14a. Here is what each one means in plain words.

#State disability insurance (SDI) and paid leave

A few states take money from your paycheck for disability or paid family leave programs. Labels look like SDI, CASDI, NJSDI, NYSDI, FLI, or PFL.

IRS Publication 17 says mandatory contributions to certain state benefit funds are deductible as state income taxes on Schedule A, line 5a. California, New Jersey, New York, and Rhode Island disability funds are on that list. It only helps if you itemize, and it counts toward the state and local tax (SALT) cap.

Texas has no state disability tax and no state income tax. If you work in San Antonio for a Texas employer, you will rarely see an SDI line. If you do, ask your employer which state it belongs to.

#Union dues and uniform payments

Labels like UNION or UNIONDUES show dues taken from your pay. The W-2 instructions name union dues and uniform payments as examples. For tax years 2018 through 2025, unreimbursed employee expenses like these were not deductible on a federal return. Under the OBBBA, that suspension was made permanent, so in our reading it stays that way for 2026. Confirm before relying on it.

#Retirement plan entries: 414(h) and after-tax money

414(h) is used by many state and local government pension plans. The W-2 instructions say not to report section 414(h)(2) contributions in box 12, and to use box 14a instead. Your box 1 wages are usually already lower by this amount. Your state return may treat it differently.
After-tax 401(k) money, not Roth, and certain employer contributions may also be listed. The W-2 instructions allow nonelective employer contributions, voluntary after-tax contributions, required employee contributions, and matching contributions here.

#Other entries you may see

Health insurance premiums deducted (often labeled MED, HLTH, or PRETAX)
Educational assistance payments
Nontaxable income
A minister’s parsonage allowance and utilities
Vehicle lease value, if your employer included 100% of a company car’s annual lease value in your pay
Railroad retirement labels like “Tier 1 tax” and “RRTA compensation” for railroad workers

#What changed on the 2026 W-2

#Box 14 split into 14a and 14b

For 2026, the W-2 splits box 14 into two parts. Everything that used to go in box 14 now goes in box 14a, Other. The new box 14b is for Treasury Tipped Occupation Codes, which are three-digit codes the IRS publishes. Box 9 was made smaller to fit an extra entry in 14a.

#Overtime goes in box 12, code TT (final for 2026)

The OBBBA lets eligible workers deduct qualified overtime for tax years 2025 through 2028. The 2026 W-2 instructions put the cap at $12,500, or $25,000 if married filing jointly. Only the “half” in “time-and-a-half” counts, and only for overtime required under the Fair Labor Standards Act.

For 2026 wages, this is final IRS guidance: employers report qualified overtime in box 12 with code TT. It is not a box 14 item anymore. Our overtime deduction guide covers who qualifies and how the phase-out works.

#Tips go in box 12 code TP, plus a code in box 14b

The OBBBA also allows a deduction for qualified tips of up to $25,000, per the 2026 W-2 instructions. For 2026, employers report total cash tips in box 12 code TP and list your tipped occupation code in box 14b. If any tips came from a job not on the IRS list, the employer enters “000” as one of the codes. See our tip income deduction guide.

#Why your 2025 W-2 may show overtime in box 14

For 2025 W-2s, the ones filed in early 2026, the IRS did not change the form. IRS Notice 2025-62 gave employers penalty relief. It said they could share overtime amounts “by including it in box 14 of the employee’s Form W-2,” a portal, or a separate statement. So a 2025 W-2 with “OT” or “QOC” in box 14 is normal. For 2026, look in box 12 instead.

#The S corp owner angle: health insurance is box 1, not box 14

#What Notice 2008-1 requires

Say you own more than 2% of an S corp, and the company pays your health insurance. The rules are strict here. IRS Notice 2008-1 requires the S corp to report the premiums as wages on your W-2, in the same year. That is how you get the self-employed health insurance deduction.

The 2026 W-2 instructions agree. They list the premiums for “2%-or-more shareholder-employees paid by an S corporation” as part of box 1 wages. The premiums are generally left out of boxes 3 and 5 (Social Security and Medicare wages) when the exclusion in IRC 3121(a)(2)(B) applies.

#Where box 14 fits

Many payroll systems also print a line like “S-CORP HLTH 14,400” in box 14. That line is a helpful note for your tax preparer. It is not the reporting Notice 2008-1 asks for. If the premium shows in box 14, but not in box 1, the setup is wrong.

#A worked example

Say you are a 100% owner. Your S corp pays you $60,000 in cash salary and pays $14,400 of health insurance for you in 2026.

Box 1: $60,000 + $14,400 = $74,400
Boxes 3 and 5: $60,000 (premiums left out, assuming the 3121(a)(2)(B) exclusion applies)
Box 14a: “S-CORP HLTH 14,400” (optional note)
Your 1040: you report $74,400 of wages and generally deduct the $14,400 as self-employed health insurance, if you meet the other rules

Our full guide to the 2% shareholder health insurance rule walks through each step. If your payroll is not set up this way, our Gusto W-2 setup walkthrough for S corp owners shows where the setting lives.

#How to handle box 14 when you file

#Match each label to a category

Most tax software shows a box 14 dropdown. Pick the closest match:

State disability (CA, NJ, NY and a few others): choose the “other deductible state tax” option. Paid family leave usually does not count.
414(h) or other pension money: choose the retirement or 414(h) option.
Union dues, uniforms, health premiums deducted: usually “other” or “not on list.” These rarely change your federal tax.
S corp health insurance: “other.” The real reporting is already in box 1.

#When to ask your employer

If a label makes no sense, ask payroll what it means. They wrote it. Do not guess. A wrong pick can lead to a wrong deduction. You can also compare your W-2 to your IRS wage and income transcript. Our guide shows how to pull your wage and income transcript.

#If you are the employer

If you run payroll for your own business, keep box 14a labels short and clear. Fix the box 12 codes for overtime and tips before you file 2026 W-2s. For 2026 forms, the filing date with the SSA is February 1, 2027, per the W-2 instructions. If you are adding your first employees, our hiring your first employee checklist covers the setup. Our tax returns team can review your W-2 lines when it prepares your return.

#Common questions

#What are the codes in box 14 of my W-2?

They are labels your employer made up to give you extra information. There is no official IRS list. Common ones include SDI, UNION, 414H, and health insurance premiums.

#Is there an IRS list of W-2 box 14 codes?

No. The IRS only gives examples. It tells employers to label each item themselves. It does set a few labels for railroad employers, such as “Tier 1 tax”. Beyond that, the only IRS-assigned codes in box 14 are the new tipped occupation codes in box 14b. Those start with 2026 W-2s.

#What is code V in box 14 of a W-2?

Code V is a box 12 code, not a box 14 code. Many people search for “box 14 code V” because box 12 and box 14 sit close together on the form. Look in box 12 for the letter V. It shows income from exercising nonstatutory stock options. That income is already in boxes 1, 3, and 5, so do not add it again.

#Does box 14 affect my taxes?

Usually not much. Most entries are information only. A few can matter, like state disability contributions you may deduct if you itemize, or 414(h) amounts on some state returns.

#Where is overtime on my 2026 W-2?

In box 12 with code TT, per the 2026 W-2 instructions. On a 2025 W-2, your employer may have shown it in box 14 instead, which Notice 2025-62 allowed.

#What is box 14b on the new W-2?

Box 14b holds the Treasury Tipped Occupation Code for workers who get tips. It pairs with box 12 code TP, which shows your total cash tips. It is new for 2026.

#My S corp W-2 shows health insurance in box 14. Is that right?

Only if it is also in box 1. Notice 2008-1 says a 2% shareholder’s premiums must be reported as wages. The box 14 line is just a note.

#Can I ignore box 14 when I file?

Do not ignore it. Enter each line in your software and pick the closest category. If a label is unclear, ask your employer before you choose.

#Ready to talk through your situation?

Does your W-2 have lines you cannot decode? Do you own an S corp and want to check that payroll is set up right? We can go through it with you. Book a Tax Discovery call: free, on Google Meet, no pitch, and free advice either way.