Tax Deductible does not mean you can deduct it from your taxes when you file, you need to have the deductions taken out by your employer or payroll company, this reduces your taxable income. This started my adventure into learning about commuting on public transportation in South Florida.
I started my search on our payroll company's website looking into Commuter Benefits section. This took me to a very informative website called WageWorks. WageWorks is the company that processes the payroll deductions for our payroll company and sends the debit cards that are used to purchase the monthly passes.
The way WageWorks works is that you sign up for the service through their website. You place the orders for the Commuter benefits they offer. They have many 'products' in their catalog to choose from. You place your order and the following month WageWorks will deduct the money from your paycheck and then push the funds into your debit card. The first time you sign up, they will send you a new Debit card that you use to purchase the monthly passes. In subsequent months Wageworks will transfer the funds to your debit card in time to purchase the next month's pass.
The first month, I ordered a monthly MetroRail ($101.25) pass with a parking pass ($11.25) and a Tri-Rail monthly pass ($100). This totaled $212.50, was deducted from my pay as $141.25 deductible and $71.25 non-deductible. In the mail I received a debit card for $100 and a monthly MetroRail EasyTicket and a parking pass to hang from my rear view mirror.
During the month of April I learned more about the process. Instead of purchasing two separate monthly passes I should have purchased a Regional monthly pass for $145 that works on both Tri-Rail and MetroRail.
Then I learned about the Employer Discount Program (EDP). I searched on the Tri-Rail website for information about the EDP program. First, your employer must sign up to participate in the program. Then each employee must fill in an application online and wait for this to be approved. You will receive an email with a member number. You will need to take this number to a "Photo Station" to fill in another paper form and obtain your EDP EASY CARD with your photo on it. The EDP program brings the cost of the monthly regional pass down to $120.
So this month instead of spending $212.50 I am spending just $131.25, I do not know of any discounts I am missing still.
Commuting by car daily means driving 2,000 miles and spending 40 hours in unproductive drive time, leaving early in the am and late in the evening to avoid heavy traffic.
Commuting via public transportation means spending more time commuting (60 hours) but I am able to work during these 60 hours. I can leave earlier and arrive home about the same time I used to leave to avoid traffic jams. The cost of tolls, gas, wear and tear is easily over $1,000/month gas and tolls alone are over $300.
This first month was not tax deductible because of the delay that WageWorks has in initiating the orders and payroll deductions. This month, I paid the $120 + $2 for the Monthly Regional Pass. There is no way to enter the $120 on a tax return, the deductions need to come out of payroll so that they appear on your W2.
The only other problem with the process is that WageWorks does not have a product to select for the $120 EDP Monthly Regional pass. They will deduct $145/month and push this onto the debit card. Once every 5 months I will turn off the deduction to use up the excess balance that has accumulated.
I now need to purchase the monthly parking pass at a kiosk in a MetroRail station. The monthly parking pass can only be purchased with a monthly pass. More on this later...
For 2015, there is a limit of $130 per month for commuting and $130/month for parking. In 2013 and 2014 the limit was $250 for commuting and parking. Congress retroactively changed the limit on 2014 from $130 to $250 causing headaches for the employers to re-issue W2s. Here is the IRS information about this process
see “Transportation (Commuting) Benefits” in Publication 15-B, Employer’s Tax Guide to Fringe Benefits.
The Tri-Rail Website shows these ticket stations on their website here However, the FLL Airport ticket kiosk IS a Photo Station.
| Station | Weekdays | Weekends / Holidays |
|---|---|---|
| West Palm Beach | 5:30 a.m. - 8:30 p.m. | 8:00 a.m. - 6:00 p.m. |
| Pompano Beach | 6:00 a.m. - 2:00 p.m. 3:00 p.m. - 6:30 p.m. | CLOSED |
| Ft. Lauderdale Airport | 5:30 a.m. - 9:00 p.m. | 6:30 a.m. - 4:30 p.m. |
| Metrorail Transfer | 5:00 a.m. - 9:30 p.m. | 9:30 a.m. - 5:30 p.m. |
| Hialeah Market/Miami Airport | 5:00 a.m. - 9:00 p.m. | 7:00 a.m. - 5:00 p.m. |
Photo Station hours to obtain discounted fare EASY Cards.
| Station | Weekdays | Weekends / Holidays |
|---|---|---|
| West Palm Beach | 9:00 a.m. - 6:00 p.m. | 9:00 a.m. - 5:00 p.m. |
| Pompano Beach | 8:00 a.m. - 5:00 p.m. | CLOSED |
| Metrorail Transfer | 10:00 a.m. - 5:30 p.m. | 10:00 a.m. - 3:30 p.m. |
Thank you. This is very valuable!
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