What qualifies as "Nontaxable employee transit and parking expenses"?

[DavidD66 · Accepted solution]

Qualified transportation fringe benefits allow employees and employers to use pre-tax dollars towards commuting expenses. In general, these benefits are completely optional and employers are not required to offer them. However, some cities with high commuter populations (e.g. New York City, San Francisco, Washington, D.C.) have laws that make it mandatory for employers to offer the benefit.

The tax law defines qualified transportation fringe benefits as:

• Any transit pass
• Qualified parking
• Transportation in a commuter highway vehicle between the employee’s residence and place of employment
• Any qualified bicycle commuting reimbursement (Beginning 1/1/2018 employees are no longer able to exclude reimbursements for bicycles from their income.)