[Individual]Transportation (Feb-24-2011, 54 days left)

You can exclude transportation benefit up to certain limits.

First , you need to identify whether it's a qualified transportation fringe benefit, all of the following applye:

• Transportation in a commuter highway vehicle between your home and work place.

>6 adults (not include driver), employee occupy half of seating capacity

• A transit pass.

Any pass, token, farecard, voucher

• Qualified parking

Parking near to employer's place of business, or near to mass transit, etc.

• Qualified bicycle commuting reimbursement

The reimbursement is based on the number of qualified months. It can be for expenses for the purchase of a bicycle and bicycle improvements, repair, and storage.

A bona fide cash reimbursement is excludable. However, cash reimbursement for a transit pass is excludable only if a voucher or similar item is not readily available for direct distribution to you.

Second, there is a limit of 230/month.

For qualified parking, you may have higher limit. For bicycle reimburse, it is up to 20 * number of qualified months.

PSQ

Source: http://www.irs.gov