Employers’ Commuter Benefits Programs — referred to by some as commuter FSAs or transit FSAs — give employees the ability to use pre-tax funds for work-related transit and parking expenses.
Governed under Section 132 of the tax code, eligible commuter expenses include public transportation used for your transit to work and many parking expenses. Only your work-related commuter expenses are eligible. This is an individual benefit only, so you are unable to use this benefit for your spouse’s or dependents’ commuter expenses.
Below are some examples of qualified and unqualified expenses.
Your employer might have additional limitations. See your plan documents for more information. If you have additional questions regarding eligible expenses, please contact your accountant or financial advisor.