Box 14 on Form W-2 is a catch-all space where your employer reports payroll items that don’t fit into the other numbered boxes, and the codes it contains range from deductible taxes you’ll want on Schedule A to purely informational figures already baked into your wages. Because the IRS lets each employer choose its own labels, the same item can look different on two W-2s from two jobs. Below is what the common Box 14 codes mean and, more importantly, whether each one changes anything on your return.
Why the Labels Look Different on Every W-2
The IRS instructions for Box 14 tell employers only to “label each item,” with examples like state disability insurance taxes, union dues, uniform payments, health insurance premiums, educational assistance payments, and a minister’s housing allowance.1Internal Revenue Service. General Instructions for Forms W-2 and W-3 (2026) Beyond that, each payroll department writes its own abbreviations. One employer prints “CA SDI,” another “State Disability,” a third just “SDI.” When a code isn’t obvious, start with any legend your employer included with the W-2, or call payroll.
One structural change to know for the 2026 tax year: the IRS split the old Box 14 in two. Box 14a is the general-purpose “Other” field. Box 14b is reserved for Treasury Tipped Occupation Codes, which apply only when cash tips are reported in Box 12 with code TP.1Internal Revenue Service. General Instructions for Forms W-2 and W-3 (2026) If you don’t receive tips, Box 14b is not something you need to think about.
How to Enter Box 14 in Tax Software
Most of the real trouble happens here. Tax software gives you a text field and a dropdown for each Box 14 line, and the category you pick determines whether the amount flows to the right place on your return or vanishes. If your W-2 says “SDI” and you select “Other” instead of “State Disability Insurance,” the software won’t carry that figure to Schedule A, and you can lose a deduction you’re entitled to.
Plenty of Box 14 entries genuinely don’t need to go anywhere. Informational items like the cost of employer-sponsored health coverage, or a retirement contribution already captured in Box 12, don’t change your tax no matter what dropdown you pick. Match the label to the closest category the software offers. If nothing fits and your employer confirms the item is informational, “Other” is fine. The sections below explain which codes actually matter.
State and Local Tax Codes
State and local withholdings are the Box 14 entries most likely to affect your bottom line, because they can be deducted on Schedule A if you itemize.
State Disability Insurance and Paid Family Leave
Labels like “SDI,” “VPDI,” “SUI/SDI,” “PFML,” and “PFL” represent mandatory employee contributions to state-run disability or family leave programs. Around a dozen states require these deductions, with employee rates ranging roughly from 0.1% to 1.3% of covered wages depending on the state and program.
These contributions count as state taxes you paid, which means they fold into your state and local tax (SALT) deduction on Schedule A if you itemize. For the 2026 tax year, the SALT deduction cap is $40,400 for most filers, up from the $10,000 cap that applied from 2018 through 2025. The higher cap phases down once modified adjusted gross income exceeds $505,000. For married filing separately, the cap and threshold are roughly halved.
One thing to watch: if you worked for two or more employers in the same state during the year, combined SDI withholding may exceed the state’s annual maximum. A single employer that over-withheld should reimburse you directly. When the excess comes from multiple jobs, you typically claim a credit for the overage on your state return. The exact mechanics vary by state.
Local and City Income Taxes
Entries like “Local Tax,” “City W/H,” or a city name followed by “Tax” report local income taxes your employer withheld. Local rates typically fall between a fraction of a percent and about 2.4%. When state and local information involves more than two jurisdictions, your employer is required to issue a second W-2 rather than combine everything on one form.1Internal Revenue Service. General Instructions for Forms W-2 and W-3 (2026)
Local taxes also fold into the SALT deduction on Schedule A and count toward the same $40,400 cap. You’ll usually need the Box 14 amount to file the required local return for that jurisdiction as well.
Retirement Contribution Codes
Codes like “401K,” “ROTH 401K,” “403B,” and “457B” report what you contributed to a workplace retirement plan. In most cases the same figure is already captured in Box 12 with a letter code (D for traditional 401(k), E for 403(b), G for 457(b), AA for Roth 401(k), and so on). The Box 14 duplicate usually exists to help with state tax calculations, since some states treat these contributions differently than the federal government does.
Traditional pre-tax deferrals are excluded from Box 1 federal taxable wages and are taxed when you withdraw them. Roth contributions are made with after-tax dollars, so they’re already in Box 1. Both are subject to Social Security and Medicare tax.2Internal Revenue Service. Retirement Plan FAQs Regarding Contributions
The 2026 elective deferral limit for 401(k), 403(b), and most 457(b) plans is $24,500, with an $8,000 catch-up if you’re 50 or older.3Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026; IRA Limit Increases to $7,500 If your Box 14 or Box 12 total exceeds your applicable limit, contact your plan administrator to withdraw the excess before your filing deadline. Otherwise the excess gets taxed twice.
Government employees often see “PERS,” “STRS,” “414H,” or similar entries. These are mandatory contributions to a state or local public pension. In many cases they’re already excluded from Box 1 federal wages and appear in Box 14 so you can handle them correctly on your state return. If they aren’t excluded from Box 1, some states let you subtract them when calculating state taxable income. Your state’s instructions will tell you which line takes the figure.
Health-Related Codes
HSA Contributions
An entry labeled “HSA,” “HSA Contrib,” or “HSA-ER” reports money deposited into your Health Savings Account. Employer contributions, including any amount you elected through a cafeteria plan, are normally shown in Box 12 with code W.4Internal Revenue Service. HSA Contributions – IRS Courseware When the same amount also appears in Box 14, it’s there for your records.
Regardless of where it lands on the W-2, you must file Form 8889 with your return to report HSA activity.4Internal Revenue Service. HSA Contributions – IRS Courseware For 2026, the maximum combined contribution from all sources is $4,400 for self-only coverage or $8,750 for family coverage under a high-deductible health plan.5Internal Revenue Service. Publication 969 (2025), Health Savings Accounts Your personal contribution limit is reduced by whatever your employer put in, so the Box 14 or Box 12 figure matters for staying under the cap.
Cost of Employer-Sponsored Health Coverage
A code like “Health Cost” or “DD” shows the total annual premium your employer and you together paid for group health coverage. The Affordable Care Act requires this disclosure, and it’s normally reported in Box 12 with code DD. Some employers put it in Box 14 instead. Either way, the number is purely informational. It does not increase your taxable income and does not get entered anywhere on your return.6Internal Revenue Service. Reporting Employer-Provided Health Coverage on Form W-2
Group-Term Life Insurance
If your employer provides life insurance coverage exceeding $50,000, the cost of the excess coverage is taxable. That taxable amount is added to your wages in Boxes 1, 3, and 5, and also reported in Box 12 with code C.7Internal Revenue Service. Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits Some employers list the value separately in Box 14 under “GTL” or “Group Life.” Because the taxable portion is already in Box 1, the Box 14 entry doesn’t change your tax. It just shows the breakdown.
Union Dues and Payroll Charitable Contributions
A “Union Dues” or “Dues” entry tells you how much was withheld for labor organization membership during the year. The Tax Cuts and Jobs Act suspended the federal miscellaneous itemized deduction that once covered union dues, and the One Big Beautiful Bill Act, signed into law in July 2025, extended the suspension. For the 2026 tax year, union dues remain non-deductible on your federal return. The Box 14 amount is informational at the federal level, though some states still allow a deduction on the state return.
Payroll charitable contributions may appear as “Charity,” “CFC” (Combined Federal Campaign), or a similar label. These are after-tax donations. They don’t reduce your Box 1 wages, and federal law does not permit them to be made pre-tax.8U.S. Office of Personnel Management. If a Donor Makes a CFC Payroll Deduction, Are Those Contributions Pre-Tax or After-Tax? If you itemize, you can claim them as charitable deductions on Schedule A. The Box 14 amount is your receipt, so route it to charitable contributions in your software rather than “Other.”
Clergy Housing Allowance
Ministers and clergy often see a Box 14 entry for a housing or parsonage allowance. Under Section 107 of the Internal Revenue Code, an ordained minister can exclude a properly designated housing allowance from gross income for federal income tax purposes.9Internal Revenue Service. Ministers’ Compensation and Housing Allowance
The trap: while the housing allowance is excluded from income tax, it is not excluded from self-employment tax. The full allowance must be included in net earnings from self-employment when calculating SECA tax.9Internal Revenue Service. Ministers’ Compensation and Housing Allowance The Box 14 amount is excluded from Box 1, so if you don’t pick it up on Schedule SE, you’ll underreport self-employment tax.
Fringe Benefits Already in Box 1
Several Box 14 codes exist purely to show you a slice of your wages that has already been added elsewhere on the form.
Personal use of an employer-provided vehicle. When your employer provides a car for both business and personal use, the personal-use value is a taxable fringe benefit. The employer calculates it, adds it to Box 1 wages, and may list it in Box 14 under “Auto” or “Personal Use.”7Internal Revenue Service. Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits The Box 14 entry doesn’t change your return.
Educational assistance. A code like “Educ Assist” or “Tuition Reimb” reports employer-provided educational assistance. Up to $5,250 per year is excluded from your gross income, and that exclusion amount stays the same through 2026. Starting in 2027, the $5,250 threshold will be adjusted annually for inflation.10Office of the Law Revision Counsel. 26 USC 127 – Educational Assistance Programs Any excess over $5,250 should already be included in Box 1. The Box 14 entry lets you verify the total.
Non-qualified deferred compensation. “NQDC” or “Non-Qual Def Comp” indicates a plan that lets highly paid employees defer income beyond 401(k) limits. Unlike a traditional 401(k) deferral, NQDC amounts are included in Box 1 wages and are subject to Social Security and Medicare taxes in the year of deferral. Nothing special is required on your federal return, but confirm the figures match.
What to Do With an Ambiguous Code
You will occasionally see labels like “MISC,” “OTHER,” or an internal payroll shorthand that means nothing to you. Don’t guess. Entering the wrong category in tax software can either inflate your income or cost you a deduction. Your employer is required to explain any Box 14 entry if you ask. Contact payroll or HR, request a written explanation, and keep it with your tax records.
If the amount turns out to be a tax that was withheld (state, local, or disability), it belongs on Schedule A as part of your SALT deduction if you itemize. If it’s an informational amount already reflected in Box 1, you can skip it on the federal return. If it relates to a state-specific program, check your state’s filing instructions, because many states have dedicated lines for items that don’t appear anywhere on the federal form.
Fixing a Wrong Box 14 Entry
If a Box 14 amount is wrong or a code is mislabeled, your employer needs to issue a corrected Form W-2c. The employer files the W-2c with a transmittal Form W-3c with the Social Security Administration, and the IRS instructs employers to do this “as soon as possible” after discovering the error.11Social Security Administration. Helpful Hints to Forms W-2c/W-3c Filing You should receive a copy.
Don’t file with a number you know is wrong. If your employer is slow and the filing deadline is close, file with the best information you have and amend later when the W-2c arrives. A Box 14 error that only affects an informational figure won’t change your tax liability, but an incorrect SDI, local tax, or retirement contribution amount can ripple through both your federal and state returns and trigger a notice.