Box 14 contains other income or deductions your employer wants to report to you, but not to the IRS

Box 14 is a catch-all section on your W2 form where your employer can report income, taxes, or deductions that don't fit into the standard boxes. The IRS does not use Box 14 data — it is there for your information and your state's information only. What appears in Box 14 depends entirely on what your employer chooses to report there, and the label next to the amount tells you what it is.

Common items in Box 14 include state disability insurance deductions, union dues, health savings account contributions, dependent care benefits, educational assistance, or local taxes. Some employers use it to report taxable fringe benefits or reimbursements that are not wages. Because Box 14 is not standardized, you need to read the label your employer provides to understand what the number means and whether it affects your tax return.

Key Takeaways

  • Box 14 is employer-specific and not reported to the IRS, so it does not automatically change what you owe in federal taxes.
  • The label next to the Box 14 amount tells you what the money represents — read it carefully because different employers report different things.
  • Some Box 14 items (like state disability or local taxes) may affect your state return even though they do not affect your federal return.
  • If Box 14 shows a deduction you did not authorize or do not recognize, contact your payroll department to confirm it is correct.

Common items employers report in Box 14

State disability insurance (SDI) is one of the most frequent Box 14 entries. California, New Jersey, New York, and Rhode Island require employers to deduct SDI from employee paychecks. This money goes into a state fund that pays benefits if you become temporarily unable to work due to illness or injury. The deduction is not federal income tax, so it does not reduce your federal taxable income — but it does reduce your take-home pay.

Union dues often appear in Box 14 when your employer deducts them from your paycheck on behalf of your union. These are not tax-deductible at the federal level for most workers (the rules changed in 2018), but your union or your state may need to see the amount for their own records.

Other common Box 14 entries include dependent care benefits, educational assistance payments, health savings account contributions, life insurance premiums, parking or transit benefits, and local income taxes. Some employers also use Box 14 to report taxable fringe benefits — such as the value of a company car or gym membership — that count as income but are not wages.

How Box 14 differs from other W2 boxes

The key difference is that Box 14 is not sent to the IRS. Boxes 1 through 12 and Box 20 all go to the federal government as part of your tax record. Box 14 is for you and your state only. This means an amount in Box 14 will not automatically change your federal tax return, even if it represents money that came out of your paycheck.

However, some Box 14 items may affect your state tax return. If Box 14 shows state disability insurance, for example, your state will use that figure to confirm the deduction was correct. If it shows local income tax, you may need to report that on your state or local return. Always check your state's tax instructions to see whether any Box 14 items belong on your state forms.

When to contact your employer about Box 14

If Box 14 shows an amount you do not recognize, or if the label is unclear, contact your payroll or human resources department. Ask them to explain what the item is and why it was deducted. Common reasons for confusion include:

  • A deduction you thought you had cancelled but that continued to be taken from your paycheck.
  • A benefit you enrolled in but forgot about, such as a dependent care account or health savings account.
  • A state-mandated deduction (like SDI) that you were not aware was being taken.
  • An error in the amount or a duplicate entry.

If your employer made a mistake, they can issue a corrected W2 (called a W2-C) before the tax filing deadline. If you discover the error after you have filed your return, you can file an amended return using Form 1040-X.

Box 14 and your tax return

In most cases, you do not need to do anything with Box 14 information when you file your federal tax return. The IRS does not see it, so it does not affect your federal calculation. However, you should keep your W2 and any pay stubs that explain Box 14 entries, in case you need to reference them later.

If you are itemizing deductions on your federal return, check whether any Box 14 items are deductible. For example, if Box 14 shows union dues, you cannot deduct them federally — but if it shows a state or local tax, you may be able to deduct it as part of your state and local taxes (SALT) deduction, up to the $10,000 annual limit. Your tax software or tax preparer can help you determine whether Box 14 items belong on your return.

Frequently Asked Questions

Does Box 14 count as income?

Not always. Some Box 14 items are income (like taxable fringe benefits), while others are deductions (like union dues or SDI). The label next to the amount tells you which. If you are unsure, ask your payroll department or check your pay stub, which should show how the amount was categorized.

Why is Box 14 blank on my W2?

Box 14 is blank when your employer has nothing to report there. Not all employers use it. This is normal and does not mean anything is missing from your W2.

Can I deduct Box 14 items on my taxes?

It depends on what the item is. State disability insurance and union dues are generally not deductible. State or local taxes in Box 14 may be deductible as part of your SALT deduction. Ask your tax preparer or check IRS Publication 17 for rules on specific items.

What if Box 14 shows something I did not authorize?

Contact your payroll department immediately. They can explain why the deduction was taken and whether it was authorized through your benefits enrollment. If it was taken in error, ask them to correct it on a future paycheck and issue a corrected W2 if needed.