Commuters

The IRS allows you to set aside money for your commute tax-free – and now, under the new American Recovery and Reinvestment Act, you can save even more by doing so.

Here are the facts:

• The 2009 American Recovery and Reinvestment Act raises the monthly allowable tax-free transit deduction from $120 to $230 per month, matching the current parking cap. This will allow even more commuters to pay for the entire cost of their commute tax-free.

• By participating in a commuter benefits program like TransitChek®, employees use pretax dollars to pay for their commutes. Now, employees can deduct up to $230 per month for transit and up to $230 per month for parking. That can equate to annual savings of up to $1,900* or more.

• At the same time, your employer also saves money by reducing its payroll taxes. Your employer can save up to $420 a year for each employee that takes full advantage of the program.

The only way you can take advantage of these tax savings is by enrolling in a commuter benefits program offered by your company. And with the uncertainty of gas prices and other commuting expenses, now is the time to talk with your employer about TransitChek.

Want to exercise your right to save? Share this site with your employer now.