Commuter Tax Benefits

Did you know you can pay for certain commute costs with pre-tax* dollars and reap the benefits every day? Under Section 132(F) of federal tax code, an employer can offer its employees up to $230 per month for transit or vanpool costs, and up to $230 in qualified parking costs, and up to $20 for bicycling costs.

*Internal Revenue Code Section 132 (F), as amended by TEA-21, Title IX, Section 910

Here’s how to take advantage of the benefit:

• Find out if your employer offers Commuter Tax Benefits. Your Human Resources staff should be able to tell you. If they don't, you can see if they'll consider offering it. Or, you can contact an Employer Services Representative of the 511 Regional Rideshare Program and we’ll contact your employer about the program.
  
  If you are driving a van, but your vanpool is not registered with our 511 Ridematch Service, you may be missing out on some of these great benefits.
  
  
• Make sure you’re using a qualifying commute alternative. The benefit is available to commuters who are in a vanpool, take public transit or use qualified parking. (Carpooling is unfortunately not a qualified alternative because it is difficult to account for its costs. Click on County Incentives to learn about local incentives available for carpoolers.)

Resources:

If you would like to learn more about Commuter Tax Benefits and your employer can’t answer your questions, you can contact the resources listed below. Please note that these contacts do not have tax specialists on staff and are not qualified to give out tax advice.