TaxSlayer has done the best it can to provide the most commonly used codes and descriptions for each item in Box.
Employers may also contribute to accounts that fall under a cafeteria plan.
This amount includes the total paid by the employer and its employees.Errors, if you believe the amount shown for S125 in Box 14 of your W-2 is incorrect, contact your employer.Section 125 of the Internal Revenue Code provides the rules for and tax benefits of employee cafeteria plans.If the item is not specifically included in the list on the drop-down menu for Box 14, the IRS has not provided a place or specific instructions for reporting it).It may, however, choose to report certain benefits on your W-2 and code them as Café 125.Click on my profile to read more).Your employer doesn't include your pretax payments in your taxable wages on your annual W-2.
It should be entered into any software you are using to prepare your taxes.
It has already been subtracted from your Box 1 - so it has most likely already impacted your adjusted gross income.
However, your life insurance premiums on coverage over 50,000 are subject to Social Security and Medicare taxes, but not federal income tax.
Best Answer: It very likely is money that has been put into a Section 125, Cafeteria Plan.
For example, you put pre-tax money into a flexible spending account and use the money in the account to pay for medical expenses allowed under the IRS rules.Taxable Wages, cafeteria plan benefits come in various forms, including health and life insurance, dependent care and adoption assistance, accident insurance and health savings accounts.For example, your employer must report the cost of major medical, but your contributions to a health flexible spending account aren't reportable.(As the name Cafeteria Plan suggests it could be money going superior spider man pdf into one of many different options offered by your employer.You'll need to compare your records with your employer's to determine if there's been a mistake.For example, for the 2012 tax year, a single taxpayer can't contribute more than 2,500 to a flexible spending account.For example, the year-to-date gross amount on your last pay stub for the year shows all of your wages for the year, including your pretax payments.It might use the code Section 125 or Café 125, and then state your pretax payments.Source(s engineering economic analysis newnan 11th edition pdf 8 Years @ H R Block * This advice was prepared based on my understanding of the tax law in effect at the time it was written as it applies to the facts you provided.