Commuter accounts are tax-advantaged and are used to purchase eligible transit or parking expenses. Because this benefit is governed by the IRS there are limitations on what expenses are considered eligible under these plans.
Ineligible expenses include:
- Traditional ride-sharing (Uber, Lyft, etc.)
- UberPool (6 or more passengers)
- Lyft Shared
What is an eligible Vanpooling ride?
A standard Uber or Lyft ride would not qualify as a commuter eligible expense because they are not considered “vanpooling.”
The IRS provides an exception for a ride in a “commuter highway vehicle” between the employee’s work and workplace.
The ride must satisfy the following two conditions to be considered a commuter highway vehicle:
- Capacity requirement: The seating capacity of at least six adults (excluding the driver)
- 80/50 Rule
- At least 80% of the vehicle mileage is for transporting employees between homes and workplaces
- Employees occupying at least one-half of the vehicle’s seats (not including the driver)
For example, in an 8-seat vehicle driven 100 miles, at least 4 employees must be in the vehicle and 80 miles of the ride must be for transporting from home or workplace.
How do I use my commuter benefits to cover a Vanpooling ride?
Currently Forma does not have a partnership with Uber or Lyft so your Pre-tax Forma Card can’t be used in their apps. You must pay out-of-pocket then file a claim from your Forma account online or on the app.
Important note for Uber or Lyft Vanpool claim:
If you take an UberPOOL or Lyft Line ride, please use the specific commuter feature in the app. Otherwise, Forma's claim adjudication team would have no way to confirm the eligibility of the expense.
To make sure your reimbursement claim is approved, please include any details in the proof document you attach to show that the transportation is eligible under your pre-tax commuter account. Examples of proof would be a screenshot from the app or notes on the receipt.