Transportation and Parking Reimbursement Accounts
Save taxes on two types of expenses: Created by the Transportation Equity Act for the 21st Century, you may now save taxes on two types of expenses related to your daily commute to work: Transit Expenses and Parking Expenses. The tax law allows you to establish an account for each type of expense: a Transit Account and a Parking Account. Each pay period, your contributions to the account are deducted from you paycheck before taxes are calculated. In other words, these deductions are tax free!
Transportation and Parking (T&P) Reimbursement Process
- Manual T&P claims must be submitted on the T&P Claim form. Receipts may be attached, but are not necessary as long as the “Affidavit” section is completed.
- T&P claims must be submitted within 180 days of the date the expense was incurred.
- The maximum monthly Transportation reimbursement for 2012 is $230.
- The maximum monthly Parking reimbursement for 2012 is $230.
- A claim form can be submitted for multiple months of incurred expenses, as long as each month’s expenses are identified separately on the claim form. However, reimbursement for expenses incurred for future months will be made as paycheck deductions are deposited into your T&P account.
- Paycheck deductions deposited into your T&P account may not be used to reimburse expenses incurred for prior months. Note: the point here is that deposits can be used to pay for expenses incurred IN prior months as long as those expenses were FOR future months and are identified as such on the claim form. (Purchase of a 3 month pass for example.)
- Paycheck deductions deposited into your T&P account may roll from one month to the next to cover future eligible expenses. However, the total reimbursement for a month may not exceed the maximum monthly reimbursement (see above).
- T&P Claim Forms are available on line at www.creativebenefits.com or on the HR intranet forms page.
Reminder: Old money (rollovers from one month to the next) may pay new claims. New money may NOT pay old claims (claims for prior months).