Will my agency help pay my commuting costs?
Agencies have authority to pay what are commonly called “public transit subsidies” for employees to use public transportation, van pools or similar arrangements in their commuting. These are tax-free up to an annual amount, a figure that acts as the maximum that can be paid. The figure is $130 a month.
The subsidy commonly is paid in the form of transit passes or cash reimbursement up to the limit. However, it also can be paid in the form of a pre-tax deduction from salary.

In some unionized workplaces, terms are governed by a labor-management contract.
There is also a separate authority for tax-free subsidies to park at transit stations, of up to $250 a month, although this is relatively rarely used.

2021 Digital Almanac

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