Transportation Plans
What is a Pre-Tax Transportation Program?
Authorized by the Internal Revenue Service, the Pre-Tax Transportation Program is a tax-advantaged way to pay for your unreimbursed parking or mass-transit expenses. This benefit, offered by your employer, allows you to pay for certain out-of-pocket qualified transportation expenses, such as parking and mass transportation, using pre-tax dollars.
Under the Program, you can elect to have a portion of your taxable salary credited to your own personal reimbursement account(s) to be used to reimburse you tax free, for qualified transportation expenses. This is known as "salary redirection" resulting in reduced taxable income, which ultimately reduces the amount of FICA and federal income taxes you pay and in most cases, state and local taxes as well.
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