Other reportable income

[DawnC]

Do you have a question about Other reportable income? 

[SW2020]

Hello.  I have funds for riding public transit to work taken out of each paycheck.  This is my first time trying it.  It's pretax so I'm sure I must owe taxes on it but unsure what category of taxable income it falls under and whether or not I owe both state and federal taxes on it.  Please help. 

[Anonymous]

We sold a duplex on a contract (we are the lenders) and my husband was reporting the income from the mortgage payments as capital gains;  he has passed away, and I would like to know if I can report it as 'installment payments'?

[MaryK4]

You do not have to report this.  Qualified transportation fringe benefits allow employees and employers to use pre-tax dollars towards commuting expenses. The amount of pre-tax dollars allowable varies based on cost-of-living adjustments by the IRS. (The monthly maximum limit for 2019 is $265.)

@SW2020

[MaryK4]

Yes, the correct way to report it is under Installment Sales- this allocated the interest as income and also reports the Capital Gain.  You may want to check the past returns and see if you can amend.  @Anonymous