What is a Commuter Benefits Account?
A Commuter benefit is a tax-advantaged account used for eligible transit and parking expenses. Parking and Transit benefits are separate pre-tax accounts. The IRS determines what is considered a qualified expense under commuter accounts.
Who is eligible?
If offered by your employer, you are eligible for this benefit. Family members’ expenses are not eligible.
Eligible expenses include:
- Public transportation, buses, trains, and ferries
- Parking garages, mass transit facilities
Ineligible expenses include:
- Traditional ride sharing (Uber, Lyft, etc)
How are Commuter benefit accounts funded?
Commuter accounts are funded as contributions from each pay period over the course of the plan year.
You can only spend the money that’s currently available in your account. If you file a claim that’s more than your balance, you’ll be reimbursed up to the full amount you have available. The remaining amount will be reimbursed as additional contributions are made each pay period..
Can I change the amount I contribute to my Commuter benefit account?
Commuter account holders can change their contribution amount at any time, as long as it doesn’t exceed the monthly allocation limit.
How long do I have to spend my Commuter funds?
There is no plan year with commuter accounts. Your balance rolls over continuously each month and doesn’t expire unless you leave your employer.