Recently we posted on our Facebook page about National Bike to Work Day and the tax break available for biking to work through the Bicycle Commuter Benefit Act. Many of you that follow us on Facebook, and even some of you that don’t, may be wondering how exactly these bicyclists tax benefits can be obtained.
At Tax Help MD, we want to to receive as many tax breaks as possible because we want our customers to save as much of their hard-earned money as possible. We’re providing the details of the Bike-to-Work Tax Break so that you can reap the financial rewards of this environmentally-friendly commuting style.
Facts about the Bike-to-Work Tax Break:
Who is this available to?
The tax benefit for biking to work is available to any employee who regularly commutes to work by bicycle. In other words, you have to work for someone to get this benefit. (Sorry those of you that are self-employed!)
What kind of tax break is this?
It’s a fringe benefit that is administered through employers.
How much can you save?
This benefit, made available though your employer, would offset the costs of bicycle purchase, improvement, repair and storage and would be at a rate of $20 per month. Employers can choose how these funds would be provided to the employee and could be provided in the form of receipt reimbursement, regular monthly payments, or voucher system.
Can I receive other transportation benefits along with the biking benefit?
No. If you receive the benefit for biking to work, you cannot receive transit or parking benefits.
Does my employer have to provide me with these benefits?
No. Talk to your company’s HR department or benefit provider to find out what your options are. (If the benefit is not yet available, ask your company to consider it! It will make your employer seem more environmentally-friendly and help employees stay healthy and save money at the same time!)
Do you have to ride to work by bike everyday to enjoy this benefit?
No. You have to commute to work by bike at least three times a week, though.
Is there anything else you should know?
Save your receipts! This includes when you purchase your bike, pay for repairs or parts, buy a lock, or purchase any kind of biking gear such as helmets, clothes and bags. You should give this information to your employer so that it can file with the federal government and participate in the program.
You should also know that if you receive a benefit for carpooling you might not want to switch to biking. While the benefit for biking to work is up to $20 per month, the benefit for carpooling is a maximum of $115 per month. You’ll have to consider your own particular circumstances to determine what would be the smartest financial decision for you.
Find out more about Fringe benefits here: http://www.irs.gov/pub/irs-prior/p15b–2013.pdf
Looking for a tax doctor? Need some professional help in dealing with your IRS tax concerns? My Tax Help MD offers professional and state-of-the-art consultancy regarding all kinds of IRS tax issues. We can provide you complete guidance for the purpose of tax relief and tax settlements.