Commuter Expense Reimbursement Account (CERA) or Transportation
A Commuter Expense Reimbursement Account, allowed by Section 132 of the Internal Revenue Code, allows you to use before-tax dollars to pay parking and commuter costs. You can deduct up to $230 per month for parking costs or up to a maximum of $230 per month for mass transit or van pooling costs. There is a $230 limit for combining mass transit and van pooling.
Eligible Expenses
Van Pool – Any highway vehicle that seats at least six adults (not including the driver). In addition, at least 80% of the vehicle mileage will be for transporting employees between home and work, with employees occupying at least one-half of the vehicle’s seats (not including the driver). Maximum amount is $230 per month. If a participant enrolls in both the Mass Transit and Vanpooling accounts, the total combined deduction per month is $230.
Mass transit – The cost of transit passes (includes any pass, token, fare card or voucher) for mass transportation to and from work. Qualified amounts include costs of any pass, token, fare card, voucher, or other item that entitles the employee to use mass transit for the purpose of traveling to or from her/his place of work. Maximum amount is $230 per month. If a participant enrolls in both the Mass Transit and Vanpooling accounts, the total combined deduction per month is $230.
Parking – For parking at or near your primary work location; the location where you take mass transit; or the location where you pick up the van pool. Fuel, maintenance, and insurance costs are not covered. Maximum amount is $230 per month.
