eTRAC FAQs

Mass Transit

What Mass Transit expenses are eligible to be paid under a QTE Plan?
How much can I set aside in a Mass Transit account on a tax-free basis?

What Mass Transit expenses are eligible to be paid under a QTE Plan?

Expenses for transportation provided to an employee are eligible to be paid under a QTE Plan if they are in a commuter highway vehicle (e.g. van pool) or on mass transit facilities (e.g. bus, train, subway, ferry), and if such transportation is in connection with travel between the employee's residence and place of employment. This includes expenses for any pass, token, farecard or similar item that entitles the employee to such transportation. It does not include expenses for anyone other than the employee.

Note that a commuter highway vehicle means any highway vehicle with a seating capacity of at least six (6) adults (excluding the driver); and of which at least eighty percent (80%) of the mileage for a year is reasonably expected to be used:

for purposes of transporting employees in connection with travel between their residences and their places of employment; and
on trips during which the number of employees transported for such purposes is at least one-half (1/2) of the adult seating capacity of such vehicle (excluding the driver).

How much can I set aside in a Mass Transit account on a tax-free basis?

Your maximum monthly tax-free election for mass transit expenses is limited by the IRS. The maximum for 2009 is $120 per month (a $5 increase from the 2008 limit).