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

[MaryK1]

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.

[rosee-canfield]

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.

[MaryK1]

No, you do not have to report it on your tax return because it is considered a nontaxable benefit!

[rosee-canfield]

I'm just confused because on the CA Refund Page under "Transportation and Commuter Benefits" it says to “Enter the amount of employer-provided transportation or ride-sharing benefits received and included in federal income.”

I got $100 per month pre-tax while I was employed there (8 months out of last year). So I just don’t know if I am supposed to enter in how much my commuter benefit amount was or not. It was $800 and if I enter it, it adjusts my CA refund by $1,600....which seems like too much so I don’t want to do it wrong.

The amount is NOT listed on my W-2 but IS listed as both a credit and debit each pay period. So I don't know how to treat it.

[MaryK1]

Sorry I did not explain it well- if you receive the transportation and commuter benefits but did not use the money for such expenses, you must add the amount as income on your federal tax return- this is the amount you would enter in the CA tax section.  (Most employers only provide the benefits so it does not have to be reported, like train/bus cards and the like,  but as long as you paid for commuting expenses- garage fees, public transportation, etc it is not income so it is not reported on CA return)

[MaryK1]

I was trying to think of an example of when you would include it as income, but the situations are very rare- if you got the transportation benefit as cash because you told your employer that you were taking the metro to work but never actually did because you chose to drive instead, you would report it

[rosee-canfield]

I just don't understand why they would give you money BACK for not using it....

It says: "If you received this benefit, you may be eligible for both a federal and a state deduction." I did receive the benefit, so why do I not report it on my state + federal taxes?

[rosee-canfield]

It's like the only thing holding me back from filing my taxes . . .

[swvc]

The question is about California State Return deduction, not Federal 

[Mel_CA]

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]

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.

1. Go to federal>income and expenses>all income>>show more 
2. Less Common Income> Start
3. Miscellaneous Income,>start
4. Other reportable income>start
5. Next screen asks Any Other Taxable Income>yes
6. 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.

[Mel_CA]

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. 

[MarilynG1]

@Mel_CA Correct.  If your pre-tax commuter benefits were deducted from your pay, they are not included in your Box 1 Wages on your W-2 and you don't need to report anything. 

There may be a notation in Box 14, but this does not affect your tax return.

Click this link for more info on Commuter Benefits.