Which Box 12 Code indicates excludable moving expense reimbursements paid to an employee?

The Box 12 Code that indicates excludable moving expense reimbursements paid to an employee is represented by the letter P. This code is specifically used for reporting qualified moving expense reimbursements that are not subject to federal income tax.

Prior to the tax law changes in 2018, these moving expense reimbursements were generally excluded from income for certain qualified moving expenses under specific conditions, such as when the move was related to the employee's job. Although the Tax Cuts and Jobs Act drastically altered the deductibility of moving expenses for most taxpayers, the P code remains relevant for reporting these specific reimbursements when applicable under the previous tax rules.

The other answer choices relate to different types of compensations or benefits, each with their own specific context. For instance, Box 12 Code D typically refers to options given to employees, Code Y pertains to deferrals under a salary reduction plan, and Code G is associated with the taxable benefits regarding retirement plans. This differentiation ensures that each type of compensation is accurately categorized and reported on the employee’s W-2.