Commuter benefits can add up to some serious tax savings. But how? You save money on taxes every month you participate (no waiting until the end of the year), which means more money in your pocket each month. Savings can add up to a whopping 40%.
How Much Can I Contribute?
Monthly limits are set by the IRS. The 2014 contribution limits are $255 for parking and $255 for transit passes. Your monthly balance is carried forward and you can make adjustments to your contribution, join, or terminate plan participation at any time.
How Does It Work?
You authorize your employer to deduct a pre-tax amount for parking or van-pooling/transit from each paycheck, up to the IRS limits stated above. You pay for the qualified transportation with your benefits debit card or you can pay out of pocket and then file a claim for reimbursement.
Transit passes, tokens, fare cards, vouchers, or similar items entitling you to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail, or ferry.
Van-pooling is not to be confused with carpooling. Van-pooling requires a commuter highway vehicle with a seating capacity of at least 7 adults, including the driver. At least 80 percent of the vehicle mileage must be for transporting employees between their homes and workplace, with employees occupying at least one-half of the vehicle’s seats (not including the driver’s seat).
Get reimbursed for parking expenses incurred at or near your work location or a location from which you continue your commute to work by car pool, van pool or mass transit. Out-of-pocket parking fees for parking meters, garages and lots qualify. Parking at or near your home is not an eligible expense.
ABG Beneﬁts Card
Making payments for eligible transit and parking expenses has never been easier. The card allows you to avoid out-of-pocket expenses, cumbersome paperwork and reimbursement delays. Plus, one card can manage multiple account types. Learn More
Online & Mobile Access
Get account information from our easy-to-use online portal and mobile application. See your account balance in real time, ﬁle a claim for reimbursement by snapping a photo of the receipt, and check on a claim status.