What does BOX 12 CODE 'T' indicate?

Box 12 Code 'T' on Form W-2 is specifically used to indicate the amount of adoption benefits provided to an employee. The code is part of the IRS guidelines that require employers to report specific types of compensation and benefits that fall under various categories. Adoption benefits that an employer provides can cover expenses related to the adoption process, and it is crucial for both the employer and employee to report this accurately for tax purposes.

Understanding Box 12 codes is essential for accurate payroll reporting and for employees to be fully aware of the benefits they have received and how they need to report them on their tax returns. This specific code helps employees identify the adoption benefits they've received, which may affect their tax calculations or eligibility for tax credits related to adoption.

The other options relate to different types of benefits or contributions that have separate codes in Box 12, demonstrating the importance of precise identification of each benefit type through the appropriate code.