Qualified Transportation Benefits

Qualified Transportation Benefits

A Qualified Transportation Benefit (communter account) is an employer-sponsored benefit program that allows an employee to set aside pre-tax funds in separate accounts to pay for qualified mass transit and parking expenses associated with their commute to work.

Mass transit has always been eco-friendly, a great way to get some work done on the commute, and puts money back in participants' wallets. Contributions to a commuter account are free from federal and state income, Social Security, and Medicare taxes and remain tax-free when it is reimbursed for eligible expenses. 

2017 IRS Monthly Contribution Limits and Eligible Expenses

Mass Transit

Get reimbursed for transit passes, tokens, fare cards, vouchers, or similar items entitling you to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail, or ferry. 2017 IRS limit for combined mass transit and vanpooling is $255.00 per month.

Vanpooling

Vanpooling is not to be confused with carpooling. Van-pooling requires a commuter highway vehicle with a seating capacity of at least 7 adults, including the driver.  At least 80 percent of the vehicle mileage must be for transporting employees between their homes and workplace, with employees occupying at least one-half of the vehicle’s seats (not including the driver’s seat). 2017 IRS limit for combined mass transit and vanpooling is $255.00 per month.

Parking

Get reimbursed for parking expenses incurred at or near your work location or a location from which you continue your commute to work by carpool, van pool or mass transit. Out-of-pocket parking fees for parking meters, garages and lots qualify. Parking at or near your home is not an eligible expense. 2017 IRS limit is $255.00 per month.