Is the "Transportation or Ride-sharing Benefits" (California) the same as the pre-tax set amount in my paycheck dedicated to "commuter benefits"?

Forum|Forum|7 years ago
June 1, 2019
13 replies
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MaryK1

Level 11

Yes, the Transportation Benefits are the same as the commuter benefits. Under the Transportation Equity Act, IRS code 132(f), and California state law, employers are allowed to offer payroll tax savings for transportation assistance.

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rosee-canfieldAuthor

Level 2

So do I report this amount as a deductible when I am filing CA state taxes? It is not listed on my W-2 in Box 14 from my employer, but it IS on my pay stub both under "earnings" and "deductions". So I just don't know if I am supposed to report that amount, or leave it blank.

Mel_CA

Level 2

So, to be clear, if I received commuter benefits from my company but didn't spend them, would I enter this here?

I had a certain amount taken away before taxes but then stopped commuting due to Covid and then was laid off and the money disappeared.

Thanks so much for your help!

DaveF1006

Level 15

Yes, you would need to enter that as income in your tax return. Assuming, you had no taxable document issued by your employer for these benefits, here is how you would report.

Go to federal>income and expenses>all income>>show more
Less Common Income> Start
Miscellaneous Income,>start
Other reportable income>start
Next screen asks Any Other Taxable Income>yes
The next screen will allow you to report the income with a brief explanation.

One suggestion i may offer. Check with your company to see if these benefits are already reported as W2 wages and included in Box 1 of the W2. If so, then you will not report this as I have shown above.

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Mel_CA

Level 2

Hi Dave,

Thanks so much for getting back to me. First time I had received pre-tax commuter benefits so I'm a bit unclear oh how this all works. From what I see on my old paychecks, "Transit" was deducted every paycheck. I elected into the amount that came out of my own salary and was not an additional benefit that the company provided.

Given this, I don't think I should need to note it on taxes, am I correct in this assumption?

Per your suggestion I did reach out to my old HR to confirm if it was noted in the W2.