Commuter benefits are an employer-owned, tax-advantaged spending account for public transit or parking as part of your commute to work. If your employer offers commuter benefits, you can leverage this account to reduce the money you spend on your commute.
Commuter benefits do not expire. They rollover from month to month, and year to year, as long as you’re at the same company. If you leave your company, any unused funds will be returned to the company's bank account. Your employer is not allowed to refund any unused commuter benefits per IRS regulations.
Elections have a Monthly Deadline
You can enroll, change, or cancel commuter benefits at any time. However, your company has a monthly deadline for making updates. This is the cutoff date to have your election updated for the next month.
For this example, let's assume your employer's monthly deadline is on the 10th of each month.:
- If you elect by April 10th, your commuter benefits go into effect May 1st.
- But, if you miss the cutoff and elect on April 11th, your commuter benefits go into effect June 1st.
Monthly Employee Contribution Limits
| Commuter Benefits | 2021 |
|---|---|
| Transit and Eligible Vanpooling Employee Contribution | Up to $270 / month |
| Qualified Commuter Parking Employee Contribution | Up to $270 / month |
Qualifying Expenses
Covered:
- Bus, ferry, train, trolley tickets and passes
- Parking expenses: meters, garages, and lots
- Vanpool fees (including uberPOOL, Via, and Lyft Line)
IF a Biking Fringe Benefit is also offered (for bike maintenance and repairs), it cannot be used with transit and/or parking benefits.
Not Covered:
- Tolls
- Taxis
- Gas / fuel
- Mileage
- Business trip costs
- Airport parking fees
- Residential parking fees
