COMMUTER BENEFIT PLAN (CBP) FAQs

Mass Transit

What mass transit expenses are eligible to be paid under a Commuter Benefit Plan (CBP)?

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

What mass transit expenses are eligible to be paid under a Commuter Benefit Plan (CBP)?

Workplace mass transit expenses are eligible to be paid under a CBP 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 commuting is in connection with travel between a residence and place of employment. This includes expenses for any pass, token, farecard or similar item.

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 each month?

Your maximum tax-free election for qualified mass transit expenses, as set by the IRS, is:

 •from January 1 - December 31, 2011:  $230/month
beginning January 1, 2012:  $125/month

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