The Commuting Tax Deduction

In an effort to encourage commuters to find more eco friendly ways to travel to and from work everyday the government offers a commuting tax deduction. This deduction can be applied to a number of transportation modes and is beneficial for both businesses and individuals interested in a tax break.

The Commuting Tax Deduction
The commuting tax decuction allows you to use your mode of transportation to and from work as a means to save on taxes. You can participate in a number of options including various modes of mass transit, but can also take advantage of opportunities provided for those who participate in both car and van pools. Individuals can deduct up to $245 monthly based on their travel. The tax break can be taken advantage of by individuals who have a pre-tax deduction offered by their employer. This helps cover travel expenses for many individuals every year. In fact there are as many as 2.7 million American who are able to take advantage of this tax break. There are 15,000 companies in New York alone who offer the benefit for their staff.

What can be applied?
If you are considering looking into the commuting tax deduction your employer will have to provide the pre-tax deduction as part of their benefits. It can be applied to mass transit and is not only available for travel by bus or train. It actually can apply to any form of payment made to ride mass transit as well as any pooling programs offered such as car or van pools. If you don’t have a pre-tax deduction offered by your employer speak to them about investigating the possibilities and provide a list of fellow workers who might be interested. They may be happy to learn of the many advantages and you can benefit from participating in a ride program that is very comfortable with privileges to use the HOV lane for smooth sailing.

Employer Subsidized Parking
Interestingly it can also apply to parking provided by your employer. The parking does not have to be directly on the property of the office or business but can be a nearby parking lot as well. As long as the parking is near mass transit parking used by employees or the highway used for carpools.

If you are interested in finding our more about the commuting tax deduction you can speak to Dart. Visit for information.


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