2012 W-2 Form Changes You Should Know

There’s been some confusion as of late surrounding the 2012 W-2 form changes and the purpose behind such a change.

The following outlines what’s new, what it means for your 2012 tax return and what it means for you going forward.

Changes to your 2012 W-2 forms

As a result of the Patient Protection and Affordable Care Act, employers are now required to include health care coverage costs on employee’s 2012 W-2 forms.

The amount in Box 12, code DD, is the sum of what you and your employer pay for your health insurance coverage.

This amount does not impact your 2012 taxable income.

Not all 2012 W-2 forms will have the change

The IRS announced that employers with 250 or less employees are exempt in 2012 and will have an extra year to comply, so those employees may not see the W-2 form changes until their 2013 W-2’s are issued.

Why is this information being added?

Knowing the cost of your existing employer-sponsored health care coverage is helpful to you in the event you need to purchase a health insurance policy in 2014.

The Affordable Care Act, aka “ObamaCare” requires all Americans to carry or obtain qualifying health insurance coverage or face a fine for non-compliance. As part of the Act, the government wants to assure all Americans have access to affordable health insurance.

This reporting is for informational purposes only, to let you know the value of your health care benefits so you can be a more informed consumer.

Now get latest IRS tax forms 2013 and 2013 IRS Tax news