Personal Finance

Employees who use pretax dollars to pay for transit or parking expenses can continue to do so, but companies no longer will get a deduction for any contributions they make toward those expenses. For 2018, workers with access to an employer-sponsored transit program can contribute up to $260 monthly for both transportation and parking expenses, pretax.

“If my employer takes the approach that they contribute, they still can, but they just don’t get the deduction,” Long said.

While some employee-benefits watchers have speculated that eliminating the deductibility for companies will reduce their incentive to help with commuting expenses, Long said he doubts the change will have any immediate impact on whether companies continue helping employees with commuting costs.

Additionally, if you happen to bicycle to work and receive the $20 monthly limit from your employer to defray the costs of cycling (i.e., maintenance, a new helmet), it no longer is tax-free.

As with eliminating the business deduction for other commuting contributions, it may remove the incentive for employers to help out with bicyclists’ costs of getting to work.

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