Knowledge Base

10248: W2 Box 12 Codes

1040 Individual

Where does Form W-2, box 12, code V carry to? What are codes W and H used for?

Code V

Form W-2, box 12, code V represents income from the exercise of non-statutory stock options. Since the amount is already reported in box 1 (wages, tips), which flows to Form 1040, line 1 (line 7 in Drake17 and prior), the amount in box 12 does not flow to any another section or supporting form.

Per IRS General Instructions for Forms W-2 and W-3:

"Code V—Income from the exercise of nonstatutory stock option(s). Show the spread (that is, the fair market value of stock over the exercise price of option(s) granted to your employee with respect to that stock) from your employee’s (or former employee’s) exercise of nonstatutory stock option(s). Include this amount in boxes 1, 3 (up to the social security wage base), and 5."

Code W

Form W-2, box 12, code W is for Employer Contributions to a Health Savings Account (HSA). See Form 8889 and Publication 969 for details. 

Code H

Form 1040 Instructions specify that contributions to section 501(c)(18)(D) pension plans should appear on:

  • Schedule 1, line 24f (Drake21 and future) 
  • Schedule 1, line 22 (Drake19 and Drake20)
  • Schedule 1, line 36 (Drake18)
  • Form 1040, line 36 (Drake17 and prior)

See Publication 525 for details. 

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