Thanks to a change in federal tax law, commuters have new options to reduce pollution and be compensated for taking mass transit to work. Employees are eligible to receive tax-free transit passes and can be reimbursed for sharing a ride to work.
For years, employees were able to get tax-free commuter benefits only if they took advantage of free or subsidized parking at work, but not if they commuted by transit, car-pool, bicycle, or foot.
Under the new law, employers can give commuters travel vouchers for the local transit system and reimburse employees for ride-share expenses. Another option allows up to $780 per year of an employee’s gross income (tax free) to be used for transit and ride-share expenses. The law also allows for a combination of the two approaches in which the employer and employee contribute toward the cost of transit. Employees can save 25-35 percent on the cost of commuting this way.
Association for Commuter Transportation: 202-393-3497
mailto:acthq@aol.com
FROM Co-op America Quarterly
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