What type of income does the W-2 Box 12 Code C reflect?

W-2 Box 12 Code C pertains specifically to the amount of group-term life insurance coverage provided to an employee, which exceeds $50,000. When an employer provides employees with group-term life insurance above this threshold, the value of the coverage is considered taxable income to the employee based on IRS guidelines. This means that it must be reported as income, and thus, it's included in Box 12 with Code C to clearly indicate that this amount is subject to income tax.

Understanding this classification is important because it informs both the employee and the tax preparer that this specific income needs to be accounted for when calculating taxable income. Other types of income listed in the question, such as social security benefits, retirement account contributions, and regular wages, are reported in different ways and under different codes on the W-2 form, making it essential to recognize the specific code designations for accurate tax reporting.