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A Complete Guide to Understanding Form W-2 Box 14

Form W-2 Box 14 Codes

In this blog, we’ll unravel all the layers of W-2 box 14 codes. This is the section of the form, which is like a miscellaneous corner, holding all the details that don’t fit in any other box.

What Is W-2 Box 14 and Why It Matters

Box 14 on Form W-2, labelled “Other”, sounds like a dump yard, isn’t it? Not really. It’s actually a misunderstood part of the form. It plays an important role in making space for reporting additional information for the employee’s understanding or tax filing.

If you’ve ever wondered where to report state disability insurance (SDI), union dues, personal use of a company car, clergy housing allowances, military retirement contributions, and more, now you know.

Box 14 plays a key role in matching Social Security records along with many of the state tax requirements. As with all IRS forms, missing or incorrect entries can cause penalties ranging from $60 to $660 per form.

So, before you shrug it off, let’s dive into what goes in Box 14 of W-2? Why does it matter? Box 14 what to report and what are union dues Box 14?

List of Common W-2 Box 14 Codes

The following is a handy list of common W-2 Box 14 codes, explaining what they stand for and why they matter. This list will help you enter the labels with confidence and keep your filings accurate.

Item to Report Short Label Why the Payer Lists It
State disability tax (CA, NJ) CA SDI It lets the worker claim state credit
Union dues taken from pay UNION Supports a possible deduction
After-tax 401(k) deposits AT401K Keeps retirement basis correct
Clergy housing allowance HOUSING Confirms allowance is not taxed
Military make-up pay (USERRA) USERRA23 Needed for pension records
Local or city tax LOC TAX City refund claims rely on it

Tip: Use labels with 4-8 letters. If you need more room, type “See Statement” and attach a sheet.

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Form W2 Box Decision Guide

Follow this decision guide to know where to place different types of compensation on Form W-2.

Box 14: Use this when there is no IRS code and either the worker or a state needs the number reported.

Box 12: Use this when the IRS assigns a specific code (e.g., AA = Roth 401(k)).

Boxes 1, 3, 5: Use these boxes when the amount is regular taxable wages.

State Rules for Filing Form W-2

Check out these state-specific must-dos for Form W-2 to file local tax box 14 seamlessly.

State Requirement
California and New Jersey Disability tax must appear in Box 14 or credits will be denied
New York City and Ohio Cities Put local tax in Box 14 to match city returns.
Washington Paid Family Leave Show the worker’s share in Box 14 for state audits.

Form W-2 Filing Checklist

Here’s a simple payer W-2 checklist for accurate and timely reporting. Think of it as your go-to map with five clear directions amid the stress.

  • Pull the year-end payroll report that has all the data you need.
  • Match each payroll code to a W-2 box.
  • Type clear labels in Box 14. If you have many items, mention “See Statement” and attach the list.
  • Always double-check totals against Boxes 1, 3 and 5 to catch any errors before you file.
  • E-file W-2s on Tax1099 by January 31, 2026, to avoid penalties.

Common Mistakes and Quick Fixes

Here are some frequent slip-ups that can derail your W-2 filing, along with some ways to handle box 14 correction with ease!

Mistake Result Fix
Leaving CA SDI blank State credit denied Add CA SDI, issue Form W-2c
Listing Roth 401(k) in Box 14 IRS mismatch Move to Box 12 code AA
Combining many items in one line Worker confused Split into lines or attach detail

Real-Life Scenarios

Situation (Dollar Figure) What the Payer Should Do Box 14 Entry (Label + Amount) Why It Matters
$720 California SDI tax withheld Pull the year-end total from the CA SDI payroll line. CA SDI $720 California’s tax software looks for this figure so the worker can claim a state credit.
$950 union dues deducted Use the annual sum shown in the “union dues” deduction code. UNION $950 Lets the worker show proof of dues if claiming an itemized deduction or answering a union audit.
$1,200 after-tax 401(k) deposit Total the voluntary after-tax (not Roth) deposits in the plan. AT401K $1,200 Adds to the worker’s 401(k) “basis,” preventing double-taxation at retirement.
$350 city or local tax withheld Pull the exact amount of city tax from payroll. LOC TAX $350 Many city refund forms require this number to match Box 14.
$6,500 USERRA make-up pay for 2023 Confirm the make-up amount and service year from plan records. USERRA23 $6,500 Keeps the employee’s pension and military service records in sync and satisfies IRS audit checks.

FAQs

1. Is W-2 Box 14 always required?

It’s not mandated by the IRS, but many states require certain information to be reported in Box 14. If you skip reporting state information, it can result in penalties.

2. Can the payer put two items on one line?

The best practice is to use one line per item in Box 14. But if you run out of space, attach a statement.

3. Does state disability tax go in Box 17?

No, state disability tax should be put exclusively in Box 14. Box 17 is for state income tax.

4. Do Roth 401(k) contributions belong in Box 14?

No. Use Box 12 code AA for Roth 401(k) contributions.

5. How can a payer correct errors in Box 14?

File Form W-2c and give the employee a corrected copy as soon as possible.

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