Transportation
Pre-tax Transportation Expenses
Authorized by the Internal Revenue Service (Section 132), the Pre-Tax Transportation Program is a tax-advantaged way for employees to pay for their unreimbursed parking or mass-transit expenses using pre-tax dollars. There are two components of the Transportation program, parking and mass-transit.
Parking
The 2008 monthly maximum per employee is $220.00 ($215.00 in 2007). Qualified expenses are as follows:
- Cost of parking the employee's car at a facility located at or near their office location (e.g., a parking garage or lot).
- Cost of parking at a facility located at or near a location from which the employee commutes to work (e.g., a Metro parking lot).
Mass-Transit
The 2008 monthly maximum per employee is $115.00 ($110.00 in 2007). Qualified expenses under the mass transit program are as follows:
- Transit pass, token, farecard, voucher or similar item entitling a person to transportation to and from work on a Mass Transit Facility.
- Commuter highway vehicle with a seating capacity of six or more adults (not including the driver), and at least 80 percent of the mileage use can reasonably be expected to be for purposes of transportation of employees between work and residences, and on trips during which the number of employees carried is at least one-half of the adult seating capacity of such vehicle (not including the driver).
View additional information on New Rules Governing Mass Transit Programs (effective 1.1.04)