If your employer pays all or part of your transit pass, you don’t have to pay taxes on it and they don’t either.
Recent action by Congress means employers can pay or reimburse for transit passes – up to $255 per month – and it is considered a pre-tax Commuter Benefit. That may mean an extra $100 a year for you, but depending on how many transit passes your company gives out, it could be even more significant for them.
If you use transit, ask your employer if they are using the IRS Commuter Tax Benefit to save you both some money. If not, Movability is happy to help them get set up.
Want to learn more about how commuter tax benefits work? Check out this primer for more information.
Photo via Austin American-Statesman