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What is cafe 125 on my W-2, and what do I do with it as far as my taxes are concerned?
Cafe 125 (cafeteria plan/section 125 plan) on your W-2 is referring to amounts withheld before taxes on your W-2 for various expenses, to include medical and dependent daycare. These amounts are not included in Box 1 of your W-2 as they are not subject to income tax. There is nothing special you need to do for taxes other than enter the amounts reported in the boxes on your W-2. Please let me know if you have further question!