Qualified Transportation Benefits
A Qualified Transportation Benefit (commuter 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.
2019 IRS Monthly Contribution Limits and Eligible Expenses
Pay for various commuter benefits tax-free with an IRS-compliant debit card. Use it 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. 2019 IRS limit for combined mass transit and vanpooling is $265.00 per month.
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). 2019 IRS limit for combined mass transit and vanpooling is $265.00 per month.
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. 2019 IRS limit is $265.00 per month.