What is signified by Box 12 Code "R" in tax documents?

Box 12 Code "R" in tax documents specifically refers to contributions to a medical savings account (MSA). This code is used by employers to report the amount contributed to an MSA on behalf of an employee. MSAs are designed to help individuals with high deductible health plans save money for medical expenses on a tax-advantaged basis. The contributions made to the MSA are not included in the employee's income, thus providing a tax benefit.

Understanding the context of Box 12 Codes can be critical for accurately preparing tax returns and knowing which deductions or contributions can influence an individual's taxable income. The other codes mentioned are related to different aspects of payroll and tax reporting, but only Code "R" specifically denotes medical savings account contributions.