What is a S125 plan on a W-2?
If your employer has enrolled you in a S125 plan, they may notate this on box 14 of your W-2 using the term “S125.” A Section 125 ‘cafeteria’ plan is so-called because you get to choose your benefits from a menu, like choosing food at a cafeteria.
How do I List Section 125 on my W-2 form?
The taxable wages boxes on your annual W-2 form show only your wages from which taxes were deducted; this doesn’t apply to Section 125 contributions. If your employer has enrolled you in a S125 plan, they may notate this on box 14 of your W-2 using the term “S125.”
What is Section 125 on my tax return?
It’s Section 125 or cafeteria plan amount. Probably your health insurance through your employer. June 7, 2019 2:57 PM That’s there for informational purposes only. It doesn’t impact your tax return. It’s Section 125 or cafeteria plan amount. Probably your health insurance through your employer.
What is secsec 125 on my taxes?
SEC 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 125 mean on a W-2 form?
You might be confused to see “Cafe 125” listed on your W-2 form. This may sound like it has something to do with where you go on your lunch break, but there is a more reasonable explanation. “Cafe 125” stands for IRS regulation code section 125 regarding tax-free cafeteria plans.
What is box 14 on a W-2 for Section 125?
A Section 125 plan may offer many benefits, but Box 14 of your W-2 shows only the benefits that apply to you. Benefits within a Section 125 plan may include health, disability, accident and life insurance, dependent care reimbursement and adoption assistance programs, 401 (k) contributions, health savings accounts and group legal services coverage.