Why is Box 12 (Code Q or W) different this year on my W-2?
Your Alice commuter benefit is not in Box 12. It lowers your Box 1, 3, and 5 wages instead. Box 12 codes change for other reasons: a different election, an indexed IRS cap, or a mid-year change.
Box 12 on your W-2 reports specific pretax items using single- or double-letter codes. The most commonly referenced codes are below.
Code W: Employer and employee HSA contributions
Code W shows the combined employer-and-employee contributions to a Health Savings Account through a cafeteria plan. If you saw a number last year and don't this year, you may have switched plans or stopped HSA contributions.
Alice does not administer HSAs, so Code W is unrelated to your Alice commuter benefit. Code Q (nontaxable combat pay) is military-specific and also unrelated to commuter benefits.
Where your commuter benefit shows up
Pretax commuter contributions under the federal commuter benefit rule (ยง132(f)) reduce your Box 1 wages (federal taxable income) and your Boxes 3 and 5 (Social Security and Medicare wages) directly. They are not listed in Box 12.
If you elected $200/month for transit all year, that's $2,400 of wages that never appeared in Box 1.
Why your numbers can shift
- You changed your election mid-year.
- The IRS raised the monthly cap (it was $325 in 2025 and is $340 in 2026).
- You joined or left the program partway through the year.
Will this affect my tax return?
Generally no. Commuter pretax reduces your wages before they hit your tax return. You don't separately claim commuter benefits on Form 1040.
See Do I need to claim commuter benefits on my tax return? Consult your tax preparer for return-specific guidance.
Need help?
Text or call (888) 431-4355 or email support@thisisalice.com.
Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually by the IRS.
Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.