When filing your income taxes this year did you take notice of Box 12, code DD on your W-2?
As you can see from this sample, it can be a hefty amount. Many workers will find it much higher, sometimes near or more than $20,000. And, what appears on that line has nothing to do with your earnings. You may find $15,000 in that box if you earn $30,000 per year or $300,000.
Box 12 Code DD is the value of the employer health benefits. It’s not taxable income, but because it is tax free, it represents the largest single revenue loss to the federal government. Sometimes this represents insurance premiums, more often it’s the equivalent value of self- insured benefits and arguably the most valuable part of your compensation.