IRS Box 14 Codes: 2026 Split, Taxable vs. Informational

Box 14 on your W-2 is a catch-all where your employer lists amounts that affect your pay or taxes but don’t have a dedicated box elsewhere on the form. Most Box 14 W-2 codes are informational, but a handful — S-corporation health insurance premiums, state disability and paid family leave withholdings, and a minister’s parsonage allowance — can change what you owe or get back. The tricky part is that employers pick their own labels, so the same item can look completely different from one W-2 to the next.

Why the Codes Look Different on Every W-2

Boxes 1 through 12 follow strict IRS formatting. Box 14 doesn’t. The official instructions let employers use it “for any other information that you want to give to your employee,” provided each item is labeled.¹ California state disability might appear as “SDI,” “CASDI,” or “State Disab.” S-corp health insurance might read “SCORP” or “SEHLTH.” If a code on your W-2 doesn’t match anything in this guide, your employer’s payroll department can tell you exactly what it represents. That call is the fastest way to get an accurate answer, and it’s worth making before you enter the amount into tax software.

The 2026 Split: Box 14a and Box 14b

Starting with W-2s for the 2026 tax year, the IRS split Box 14 into two parts. Everything that used to sit in the single “Box 14 — Other” field now goes into Box 14a. Box 14b is reserved for Treasury Tipped Occupation Codes, which employers must report when cash tips appear in Box 12 under code TP.¹ If you’re not a tipped employee, Box 14b will be blank. For everyone else, the change is cosmetic: the items you’re used to seeing appear in Box 14a and are handled the same way.

Codes That Can Change Your Tax Bill

S-Corporation Shareholder Health Insurance

If you own more than 2% of an S-corporation, health insurance premiums the company pays on your behalf are added to your Box 1 wages but stay exempt from Social Security and Medicare taxes. The premium amount then appears in Box 14a under a label like “SCORP” or “SEHLTH” so you can claim the self-employed health insurance deduction.² That deduction goes on Schedule 1 (Form 1040), line 17. It reduces your adjusted gross income whether you itemize or not.³

State Disability Insurance and Paid Family Leave

Several states require employees to contribute to disability insurance or paid family leave programs through payroll withholding. These show up in Box 14a as “SDI,” “CASDI,” “NYSDI,” “PFL,” or “FLI,” among other labels. The IRS treats mandatory contributions to state funds that protect against wage loss as deductible state and local taxes.⁴ The Schedule A instructions specifically list mandatory contributions to state disability benefit funds, state unemployment funds, and state family leave programs as qualifying deductions on line 5a.⁵ You can only claim these if you itemize, and they count toward the state and local tax deduction cap.

Minister’s Parsonage Allowance

If you’re a member of the clergy and receive a housing or parsonage allowance, your employer generally reports it in Box 14a. The excludable portion is the lesser of your actual housing expenses, the fair rental value of the home, or the officially designated allowance, and it isn’t included in Box 1 wages. Anything you can’t exclude has to be reported as income on line 1h of Form 1040.⁶

Codes That Are Informational Only

Union Dues

Many employers still report total union dues withheld in Box 14a. The federal deduction for union dues was suspended by the Tax Cuts and Jobs Act starting in 2018, and the One Big Beautiful Bill Act made that elimination permanent.⁷ The amount is still shown because some states allow a deduction on the state return.

Educational Assistance

Employer-provided educational assistance up to $5,250 a year is tax-free and excluded from wages.¹ Employers often list the amount in Box 14a for your records. If your employer paid more than $5,250, the excess is already in Box 1 wages. Either way, you don’t report the Box 14a figure anywhere on your return.

Commuter and Transit Benefits

For 2026, employers can provide up to $340 per month tax-free for qualified parking and another $340 per month for transit passes or vanpool costs. When benefits stay within those monthly limits, the Box 14a amount is informational. Any excess is already folded into your Box 1 wages.⁸

Other Fringe Benefits

Employers use Box 14a for company vehicle lease values, uniform allowances, employer pension contributions (nonelective, matching, and required employee contributions), and other benefits.¹ If any of it was taxable, the value is already in Box 1. The Box 14a entry is just the breakdown.

Where Each Box 14 Item Goes on Your Return

S-corp health insurance premiums: Schedule 1 (Form 1040), line 17.²
State disability, unemployment, and family leave contributions: Schedule A, line 5a, if you itemize.⁴
Non-excludable parsonage allowance: Form 1040, line 1h.⁶
Union dues, educational assistance, commuter benefits, fringe benefits: Informational. No entry on your federal return.

When you type Box 14a into tax software, match the employer’s label exactly, then pick the category the software offers (for example, “State disability insurance” or “Union dues”). That category, not the label, controls how the amount flows to the right form. Choosing the wrong category is a common filing mistake and can either lose a valid deduction or create one that shouldn’t exist.

What to Do If Something in Box 14 Looks Wrong

Start with your employer’s payroll department. They can issue a corrected W-2 (Form W-2c). If you’ve asked and no correction has arrived by the end of February, call the IRS at 800-829-1040 or visit a Taxpayer Assistance Center. The IRS will send your employer a letter requesting a corrected W-2 within ten days.⁹

If a corrected form won’t arrive before the filing deadline, the IRS will send you Form 4852, a substitute W-2 you complete from pay stubs, bank statements, and prior W-2s. If a corrected W-2 shows up later and the numbers differ from what you filed, amend your return with Form 1040-X.⁹

1
Internal Revenue Service. 2026 General Instructions for Forms W-2 and W-3
2
Internal Revenue Service. S Corporation Compensation and Medical Insurance Issues
3
Internal Revenue Service. Form 7206 – Self-Employed Health Insurance Deduction
4
Internal Revenue Service. Topic No. 503, Deductible Taxes
5
Internal Revenue Service. Instructions for Schedule A (Form 1040)
6
Internal Revenue Service. Ministers’ Compensation and Housing Allowance
7
Internal Revenue Service. Publication 525 – Taxable and Nontaxable Income
8
Internal Revenue Service. Employer’s Tax Guide to Fringe Benefits
9
Internal Revenue Service. W-2 – Additional, Incorrect, Lost, Non-Receipt, Omitted