topic How does one deduct a bike purchase in Massachussetts, given that the section on commuter expenses only has lines for EZPass Account and MBTA Passes? See MA Bill H.4104 in Education

How does one deduct a bike purchase in Massachussetts, given that the section on commuter expenses only has lines for EZPass Account and MBTA Passes? See MA Bill H.4104

jevandezande — Wed, 31 Jan 2024 18:31:43 GMT

As set forth in Bill 193.H4104 (https://malegislature.gov/Bills/193/H4104), Massachusetts provides a deduction for bike purchases. This is mentioned in the TurboTax explainer:

"All MBTA fares, not just weekly or monthly transit commuter passes, and includes RTA fares, bikeshare memberships, bike purchases (including e-bikes), bike improvements/repair/storage, and fares on non-MBTA commuter boats that are owned, operated or contracted by a municipality or a public or quasi-public entity, agency or authority, not including amounts reimbursed or otherwise deductible."

However, there is no line for such commuter expenses, only for EZPass Accounts and MBTA Passes.

Re: How does one deduct a bike purchase in Massachussetts, given that the section on commuter exp...

Cynthiad66 — Wed, 31 Jan 2024 19:02:08 GMT

This deduction is added to the deduction for weekly or monthly passes. See the example of deductions below:

You can deduct certain commuting costs against your Form 1 or 1-NR/PY income for:

Tolls paid through an E-ZPass MA account
The cost of weekly or monthly passes for:
- MBTA transit
- Bus
- Commuter rail
- Commuter boat
- Bikeshare memberships
- Bike purchases (including e-bikes),
- Bike improvements/repair/storage
- Fares on non-MBTA commuter boats that are owned, operated or contracted by a municipality or a public or quasi-public entity, agency or authority

Learn more with the Massachusetts Commuter Deduction tutorial.

For additional information go to this Mass.gov link.

Re: How does one deduct a bike purchase in Massachussetts, given that the section on commuter exp...

Jlpoettc — Wed, 06 Mar 2024 22:01:39 GMT

I, like the original poster, am trying to deduct a bike purchase, and not one that is "the cost of weekly or monthly passes for... Bike purchases". My bike purchase was not related to the MBTA. The link to the deduction tutorial is outdated and doesn't take into account the updates to MA taxes in 2023. Can you provide clarification of how to enter this?

Re: How does one deduct a bike purchase in Massachussetts, given that the section on commuter exp...

AmyC — Thu, 07 Mar 2024 01:07:57 GMT

Follow these steps:

Go through your MA return until you see Additional MA Deductions
Select Paid commuter expenses
Continue
Enter the price of the bike under commuter passes

The law passed late, Oct 2023, and was retroactive. The state was rushing to incorporate it into the return and admitted early on that they weren't sure how to handle. You can see bike purchases in the list for monthly passes, So, while it feels odd, it is correct. I imagine the state will improve the form for next year. See page 3 for changes in Instructions that shows sch Y, line 15 is correct for the bike purchase.

Tolls paid through an E-ZPass MA account
The cost of weekly or monthly passes for:
- MBTA transit
- Bus
- Commuter rail
- Commuter boat
- Bikeshare memberships
- Bike purchases (including e-bikes),
- Bike improvements/repair/storage

@Jlpoettc

Here are screen shots of the entry and the worksheet along with the final form, Sch Y.