What is code 125 in box 14 on W-2?
Box 14 s125 is for the amount of premiums that you paid tax free under an employer’s Section 125 (or Cafeteria) benefits plan. It does not reduce your refund.
What does Cafe 125 mean on my W-2?
cafeteria plan
SECTION 125 is your employer’s benefit plan. It is also known as a “cafeteria plan”. Usually, what is reported there is your medical insurance premiums that are paid with pre-tax income. They are not taxed and are not included in your W-2 Box 1 wages so you can not deduct them as medical expenses.
What does cafe in box 14 on W-2 mean?
Café 125 aka IRC Section 125 aka (Pretax) Health Insurance. Unless you live or work in the State of New York, this information is only that – information. You don’t need to enter it, and it won’t go anywhere.
Where does a 125 cafeteria plan go on W-2?
The total dependent care benefits the employer paid to the employee or incurred on the employee’s behalf (including amounts from a section 125 plan) should be reported in Box 10 of Form W-2.
What is a cafe 125 deduction?
These cafeteria plans allow employees to set aside pre-tax income for certain employer-offered benefits. Benefits provided by plans covered under section 125 include adoption and dependent care assistance, health insurance, 401k and group term life insurance policies.
What are Cafe 125 wages?
Under a cafeteria, or Section 125, plan, you pay for your employer-sponsored benefits with pretax money. Your employer deducts your payments from your wages before withholding certain taxes. Your employer doesn’t include your pretax payments in your taxable wages on your annual W-2.
How do I report Box 14 on my W-2?
Box 14: Your employer may report additional tax information here. If any amounts are reported in Box 14, they should include a brief description of what they’re for. For example, union dues, employer-paid tuition assistance or after-tax contributions to a retirement plan may be reported here.