Commuter Benefits
What are Commuter Benefits?
Commuter Benefits are employee-funded accounts for either parking or transit, that allow participants to set aside pre-tax funds to save on work-related commuting expenses. As these accounts are regulated by the IRS, the annual monthly maximum contributions are set by them each year. Contribution amounts can be changed monthly, depending on your use of the benefit. MyChoice Accounts provides a convenient debit card to pay for work-related commuting expenses.
Why Commuter Benefits?
The key benefit is tax savings. An average daily commuter in New York City can save up to $700 per year by electing commuter benefits*. If you have the option to use mass transit, you can save yourself time, money, hassle, and personal vehicle expenses by commuting to work with others. In addition to all that savings, you’re also saving the earth by reducing your greenhouse gas emissions with regular use of mass transit.
* Average annual savings varies by location.
What are Commuter Benefits?
Compare your potential tax savings
Joan commutes to work each day using a metro/transit system and pays to park at the transit station. Here’s how Joan can save by electing commuter benefits:| Without Commuter Benefits | |
|---|---|
| Gross Annual Pay | $60,000 |
| Estimated Tax Rate (22%) |
-$13,200 |
| Net annual pay | $46,800 |
| Estimated annual commuting expenses | -$7,200 |
| Final annual pay | =$39,600 |
| With Commuter Benefits | |
|---|---|
| Gross Annual Pay | $60,000 |
| Maximum annual commuter account contributions ($300/month transit + $300/month parking x 12 months) | $7,200 |
| Adjusted gross annual pay | $52,800 |
| Estimated Tax Rate (22%) | -$11,616 |
| Final annual pay | =$41,184 |
Estimated employee savings are for informational purposes only and based on the 2023 tax year. Individual savings may vary based on income, individual tax rates, state of residence, and other factors. Please consult your tax advisor.
Using your transit benefits
When you sign up for a commuter account, your employer will deduct the amount you choose from your pay on a pre-tax basis. You will receive your MyChoice Accounts Visa® card in the mail that can be used to purchase transit passes from your transit authority directly or pay for your vanpool or UberPool transportation costs.
The transit card has tight IRS regulations. The card can be set up as the funding source for most transit agency “smart cards.” This allows your transit pass to be automatically funded each month using the funds placed on your card. You may also purchase transit passes from credit card terminals or kiosks that ONLY sell transit passes. (a terminal where you could buy snacks, lottery tickets, etc. will not process your commuter card correctly)
For example, if you are at the transit agency and purchase a pass at a kiosk, the card will work. If you are at the transit agency and go to a window where they sell items in addition to transit passes, the card will decline. No matter the type of transportation, a manual claim is not possible.
Using your parking benefits
When you sign up for a commuter parking account, your employer will deduct the amount you choose from your pay on a pre-tax basis. You will receive a MyChoice Accounts Visa® card in the mail that can be used to purchase parking from designated kiosks.
The parking card will only work at parking locations that have a credit card machine that has “Parking” for the Merchant Category Code (MCC). If for some reason you can’t use the card to pay for parking, you may file a reimbursement claim through your online benefits portal or the MyChoice Mobile App. You have 180 days from the date of service to submit parking claims.
Transit Instructions by City
You have a few options to purchase transit fare across the U.S. You may use your MyChoice Accounts Visa debit card to either purchase individual fare at transit kiosks and agencies that sell ONLY fare/tickets, or use your card to purchase reloadable “smart cards” through the transit authority online system, mobile app, or kiosks.
Review city-specific auto-loading instructions and/or fare purchase information below:
New York: MTA Easy Pay
New Jersey: NJ Transit or PATCO Freedom Card
Washington, DC: WMATA General Fare, WMATA SmarTrip® Card
Chicago: Ventra or South Shore Line
Boston: MBTA General Fare, MBTA Charlie Card
San Francisco: Clipper, Apply Transit Benefits
Los Angeles: Metrolink General Fare or TAP
Philadephia: SEPTA
Atlanta: MARTA Breeze Card
Seattle: SoundTransit ORCA Card
San Diego: MTS Compass Card
Houston: Metro Q Card
Minneapolis: MetroTransit Go-To Card