What are the current monthly IRS allowable limits?
The current monthly IRS allowable limits are:
|Transit benefit - $245
|Parking benefit - $245
How do I save money on my commute if I am paying for
my commute with my pretax salary?
With Commuter Tax$ave, employees are allowed to pay for their
commuting expenses with their pretax salary, up to certain
federal limits. Paying with pretax salary means you use your
salary before federal, state and local taxes are taken out
by your employer. When you pay for your commute with pretax
salary instead of after tax salary, you save on the taxes
you normally pay.
How much can I save with Commuter
Federal law allows employees to set aside up to
the monthly IRS allowable limits, before taxes are applied,
to use for mass transit and vanpool commuting, and in addition,
up to the monthly IRS allowable limits for commuter parking.
Click here to see examples of what you may be able to save.
Specifically, what types of
commuting expenses are not subject to federal taxes?
If an employee commutes to work by mass transit or in a vanpool,
he or she is allowed to use up to the monthly IRS allowable limits, of their pretax salary,
to pay for actual expenses incurred. Vanpools, or commuter highway
vehicles, are defined as a vehicle that can hold a minimum of six
people, not including the driver, in which at least half of the
seats are filled, not including the driver, and at least 80% of
the mileage is used to commute to and from work. Mass transit can
be publicly or privately operated. Additionally, employees who pay
to park at a facility at or near their workplace can use up to the monthly IRS allowable limits,
of their pretax salary, to pay for their parking expenses incurred.
Finally, employees who park at a facility from which they take transit,
take a carpool or take a vanpool can also use up to the monthly IRS allowable limits, of
their pretax salary, to pay for their parking expenses incurred.
Can I receive a tax benefit to drive to work if I don’t
pay to park, but incur other commuting expenses like tolls and gas?
No. Commuters who drive to work and do not pay for parking
may not use any pretax monies for tolls, gas or anything else not
covered by the specific commuting expenses discussed in the previous
question (see above).
Is the Commuter Tax$ave Program exempt from state as well
as federal taxes?
New Jersey does not exempt pretax transportation benefits from state
taxes. However, pretax commuter benefits are exempt from federal
What are park and ride tax benefits?
Commuter Tax$ave allows employees to receive a tax benefit if they
park and ride mass transit to work. A park and ride benefit covers
the cost of parking at a facility from which an employee commutes
to work by transit. For example, if an employee drives to a railroad
station and pays to park at the station parking lot or at a privately
owned parking lot adjacent to the railroad station, the monthly
cost of parking is covered with Commuter Tax$ave. In this case,
an employee can arrange to have up to the monthly IRS allowable limits, of his or her salary
set aside before taxes to pay for this expense.
I drive to a parking lot from which I carpool. Am I eligible
to receive a tax benefit for parking?
Yes, up to the monthly IRS allowable limits for eligable parking expenses.
I carpool to work and pay to park near my worksite. Am I
eligible to receive a carpool tax benefit for my parking?
Yes. An employee may receive a parking benefit to pay for parking
at or near their worksite if it is part of their commuting pattern.
However, only one carpooler may claim the parking expense as a tax
I drive to a parking lot where I am picked up by my vanpool
and taken to work. Can I claim a tax benefit for my parking expenses?
Yes. If you are charged to park, you may set aside up to the
monthly IRS allowable limits of your salary before taxes to pay
for your parking expenses. And,
you may be eligible to set aside an additional amount, up to the monthly IRS allowable limits,
of your salary before taxes to pay for your vanpool expenses if
it is an eligible vanpool. Thus,
a commuter who parks and then gets into a vanpool may be able to deduct
the amount covered by the monthly IRS allowable limits from their salary
before taxes to pay for both parking and vanpool expenses. The tax-free monthly limits for
each must be observed.
How do I pay for commuting expenses if I am in the Commuter
You pay for your benefit through deductions from your salary before
taxes are taken out. This deduction, which will occur in the first
paycheck of the month, pays for the benefit product you receive
through the Commuter Tax$ave Program. You can receive a TransitChek QuickPay® Card, a prepaid Visa® Card, an annual Premium
TransitChek® MetroCard®, or Vouchers if you commute by transit. If you incur parking expenses
you can either receive the TransitChek QuickPay Card or be eligible
for reimbursement for your parking expenses through our TransitChek
Can I deduct the full amount of my commuting expenses even
if it exceeds the benefit limits?
No. If your monthly commuting cost exceeds the monthly IRS allowable limits,
you will only be able to deduct the amount covered by the limits.
Click here to see the current monthly IRS allowable limits.
How do I know how much to deduct from my salary each month
for my commute?
When you enroll in the Program, it is very important that you know
the exact amount of your commuting expenses because your payroll
deduction will be based on this. If you don’t have this information,
you should first contact your transit operator, if you’re
commuting by transit, or your parking lot operator, if you will
be parking, to get the exact amount. Transit operators generally
provide current fare information on their websites. Click here for
a link to some of the transit operators
in this area.
If I need to change my commuting pattern, can I change the
type of benefit I receive?
Yes. The Commuter Tax$ave Program allows you to change your benefit
if you move or alter your commuting pattern. If you enrolled through
the Program’s online enrollment website, you will have an
opportunity to set up your own Online Management Account at the
time of enrollment or any time thereafter. You can use the Online
Management Account at any time to modify your benefits if you change
you enrolled through the toll-free enrollment service number and/or
do not have access to the online website service, you can call TransitChek
Customer Service and they can change your benefit if your commute