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 |