I’ve used 12 gauge wire and 20 amp breakers in my basement.
They go into a shallow box and the 12 gauge is difficult to work with.
Can I drop to 14 gauge in the receptacle boxes and pigtail the connection ?
Electrical – use #14 wire pigtails on a 20A circuits
electrical
Related Solutions
As long as all the equipment is listed for the use, there's no problem using stranded wire. The UL White Book says that screw terminals and pressure plate terminals can be used with both solid and stranded wire.
UL White Book 2013
Receptacles(RTDV)
Receptacles for Plugs and Attachment Plugs (RTRT)
Terminals
Terminals of the wire-binding screw, setscrew, or screw-actuated backwired clamping types are suitable for use with both solid and stranded building wires.
It says switches are solid only, however, you can use terminal connectors such as fork connectors.
Switches (WFXV)
Snap Switches (WJQR)
Terminals
Terminals of the wire-binding screw, setscrew, or screw-actuated backwired clamping types are suitable for use with solid building wires unless otherwise indicated either on the device or in the installation instructions.Terminals of a flush snap switch are permitted for use with Listed field-installed crimped-on wire connectors or an assembly, if so identified by the manufacturer.
A flush snap switch may also be provided with conductor leads with factory-installed crimped-on connectors. Such connectors may be either attached to the flush snap switch terminal or are provided with the flush snap switch in the smallest unit shipping container and are suitable for use with the terminal of the flush snap switch.
Wire connectors (including twist-on wire connectors) can be used for both solid and stranded wire sizes between 30-10 AWG, in combinations listed by the manufacturer. Unless they are clearly marked to be used with one type or the other.
Wire Connectors (ZMKQ)
Wire Connectors and Soldering Lugs (ZMVV)
Wire stranding -- Unless clearly marked "Solid," "SOL," "Stranded" or "STR" for a given wire size, wire range or wire combination, conductors in the range 30-10 AWG are both solid and stranded, and 8 AWG and larger are for stranded wire only.
Ideal Industries has a handy PDF, that lists all the allowable wire combinations that can be used with their various connectors. For example, the Ideal 74B® (their basic yellow wire-nut) can be used with 1 - 4 #14 solid or stranded conductors.
As long as it is rated for it, it can handle it. I use these IDEAL push connectors ALL THE TIME.
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Best Answer
You can drop to #14 gauge but you must change your breaker to a 15 amp breaker. Can you replace the shallow box with a deeper one and stay with the #12?. You really don't want to lower the circuit rating in a basement. Still pigtail the connection but use the #12. It might make fitting everything back into the box easier. You could also use a box extender to get a bit more room. Some food for thought: outlets in an unfinished basement need to be GFCI protected.