eTRAC Qualified Transportation Expense (QTE) FAQs

General Information

• What is a Qualified Transportation Expense Account?
• Are highway tolls, commuting mileage, taxicab fares and fuel eligible Qualified Transportation Expense expenses?
• Can I use a Qualified Transportation Expense Account to pay for my spouse's and/or dependent's workplace mass transit or parking expense?
• Can I use my Qualified Transportation Expense Account to pay for business or personal travel expenses?
• Can money in a Parking Account be used for Mass Transit expenses and vice versa?
• What happens if I do not use all the money deposited into my Qualified Transportation Expense Account in a given Plan Month?
• Who is responsible for determining eligibility of expenses?
• Can I stop contributing to a Qualified Transportation Expense Account?
• What happens if I close my Account?
• Once my Qualified Transportation Expense election is made, can I change that election?
• Since I do not pay Social Security taxes on the money put into these accounts, will my Social Security benefits be lower when I receive them?
• Am I required to include any special reporting on my tax return (1040 Form) regarding contributions to the Qualified Transportation Expense Plan?

What is a QTE Account?

A QTE Account is a "Qualified Transportation Expense" Account that allows an employee to use tax-free dollars to pay for qualified workplace commuting and parking expenses. Participants will save on federal taxes, state taxes (in most states) and FICA.

Are highway tolls, mileage, taxicab fares and fuel eligible QTE expenses?

No. Only qualified expenses for workplace mass transit commuting and parking are eligible.

No. Only services provided for your workplace mass transit and parking are eligible.

Can money in a Parking Account be used for Mass Transit expenses and vice versa?

No. Money directed to one type of Account can be used only for expenses relating to that Account. This is true even if all the money in one Account is not used and the other Account runs short.

What happens if I do not use all the money deposited into my QTE Account in a given Plan Month?

Excess balances at the end of a Plan Month will be carried over to the subsequent Plan Month as long as you continue to be eligible to participate. You may adjust your monthly QTE election(s) to avoid having an excess balance in a QTE Account.

Who is responsible for determining eligibility of expenses?

Eligibility of expenses is dictated by the IRS and those guidelines are used by Benefit Resource, Inc. The services of an attorney are utilized if an additional opinion is needed or research is required to clarify the eligibility of an expense.

Can I stop contributing to a QTE Account?

You can elect to stop contributing to your QTE Account (that is, to make a $0 election). If you are still eligible to participate, your Account balance will continue to be available for use until funds are exhausted or your Account is closed.

What happens if I close my Account?

Once an account is closed, any remaining funds are forfeited.

Once my QTE election is made, can I change that election?

Certain situations can arise which allow the participant to change an election. These situations include:

• Change in residence or worksite
• Change in work schedule
• Change in monthly QTE expense

 

Since I do not pay Social Security taxes on the money put into these accounts, will my Social Security benefits be lower when I receive them?

If you contribute over a long period of time, your contributions to a QTE Account will reduce your Social Security benefit by a minimal amount. However, the tax savings with a QTE Account should more than offset the slight reduction in Social Security benefits in future years.

Am I required to include any special reporting on my tax return (1040 Form) regarding contributions to the QTE Plan?

Information about a QTE Account does not need to be reported for income tax purposes. The total earnings reported on your W-2 form will exclude any tax-free QTE payroll deductions.