Commuter Choice Tax Benefits

In 1998, Congress approved legislation that allows employees of corporations to pay for parking and transit (including vanpool) with pre-tax dollars while employers enjoy lower overall payroll taxes. The regulations concerning transportation benefits were finalized on January 11, 2001.

When employees buy with pre-tax dollars, they avoid federal, state and employment taxes, often saving up to 40 percent (up to the authorized pre-tax limits of $230 per month). The American Public Transit Association (APTA) has a concise information page explaining these benefits.

Chicago-area residents utilizing vanpools can ask their employer about an allowable Transit Benefit which may be available through various third-party administrators including RTA and CTA.

• The RTA Farecheck Program - Purchase vouchers from the RTA. The vouchers are used to pay for transit passes and tickets or can be used directly for your monthly vanpool invoice.
  
  
• The CTA Transit Benefits Program - Purchase Transit Cards at pre-tax prices.
  
  

To get started call
(847) 228-2492