What Is a Transit Tax Break Credit?
There are many expenses you can deduct from your taxes, and the transit tax expenseallows you to deduct what you spent for transportation to get to and from work throughout the prior year. However, these expenses have to go beyond the occasional transportation expenses, such as cab fare after a late night at the office or additional parking fees for traveling to a different location one time.
Types of Expenses You Can Claim
There are four tax break credit expenses you can claim on your taxes for transportation-related costs. These include:
- Regular transportation with a commuter highway vehicle—This is like carpooling, but your employer provides the transportation on a daily basis. To qualify, the vehicle must house at least six passengers and operate at half-full capacity every day.
- Transit passes—This qualifying expense includes any amount you spent regularly to use a local mass transit system. Types of transit passes may include ferry, rail, vanpool, or bus passes.
- Qualified parking—If your employer does not provide onsite parking for free, they may offer a spot you can pay for near your location. You can deduct any expense you incur for parking in one of these employer-approved spots.
- Going green—Your employer can provide up to $20 a month for you to purchase a bike, repair it, improve it, and store it, so you can get to work using it.
Even if you view these expenses as negligible every month, you should still diligently track them and claim them on your taxes. Even a small benefit can help your wallet!
Where to Seek Help
Knowing what expenses to input on your taxes can be confusing, especially where transit is concerned. For assistance and further information about filing your taxes, GovDocFiling is an exceptional resource. Find out more about what they offer by contacting them today!