What does W-2 Box 12 Code P indicate?

W-2 Box 12 Code P specifically indicates that the amounts in this box represent payments for work-related moving expenses that qualify for exclusion from taxable income. This code is used to report reimbursements for moving expenses that an employer provides to an employee, which can help reduce the employee's taxable income.

The relevance of this code is tied to earlier provisions in tax laws that allowed for the direct expensing or reimbursement of moving expenses related to job relocations, making it significant for employees who were eligible for such benefits.

Understanding this code and its implications can aid in accurate tax preparation, ensuring that individuals recognize and properly account for any moving expense reimbursements they may have received.

While other options mention important financial information that might be reflected on a W-2, they pertain to different Box 12 codes and are relevant for various aspects of payroll and taxation. Thus, it's crucial to associate Code P specifically with work-related moving expenses to avoid any confusion.