Tax Law (Questions About Taxes)/1040


QUESTION: I have a few questions:   *I am a federal employee

1) My health insurance is deducted from my paycheck.  The insurance company takes a portion and puts in HSA account.  Is any of this deductible?

2) I am a wage employee but get sick leave hours which are accrued.  Can I write any sick days taken?

3) I live in CA, not sure if they are taking non-occupational disability fund or State unemployment fund out?  If they are, is it deductible?

4) W2:  In box 12 I have code D and DD.  In box 14 I have K and V.
does this mean I have to do something with these amounts?

Thank you

ANSWER: David,

Thanks for your question.

1. It depends.  The amount for health insurance is deductible on Schedule A if it is not taken out pre-tax.  Most companies today have what is known as a salary reduction agreement you sign, making health insurance not deductible because you don't pay tax on that amount.

2. No.

3. That is deductible as taxes on Schedule A.

4. D is your contributions to your retirement plan.  DD is the amount your company paid for your health insurance.  Neither require any action on your part, they are not a part of your tax return.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: On question 1. How can I tell if it is not taken out pre-tax.

On question 3. Where would the amounts be located?  or are they included on w2 box 17 state income tax?


You would have to check with your HR or Payroll Department to determine the answer to #1.

Those taxes would not be included with the box 17 amount, probably listed in box 14 but there is no standard location for it.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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