Commuter Tax Benefit
The IRS allows employers to withhold a set amount of an employee’s pre-tax income for vanpool commuting costs. This lowers an employee’s taxable income, putting more money in their pocket. Employers may also provide a monthly fare subsidy as a part of the qualified IRS Transportation Fringe Benefit, under section 132(F) of the IRS tax code, lowering their FICA contribution. It’s a winning situation for employees, employers and traffic congestion!
Vanpool tax benefits do require employer involvement, so your employer needs to be the one to set up the program. Employer-paid programs involve the employers giving their employees up to $260/month to commute using transit or a vanpool. In return, the employer gets a tax deduction.
Incentives for Boulder Residents and Employees
The vanpool savings (and incentives) add up, especially for Boulder residents or employees who can combine incentives from multiple organizations. The University of Colorado Boulder offers a $35 monthly incentive for employees who vanpool; the City of Boulder and GO Boulder offer a $20 monthly incentive for Boulder residents or employees who vanpool; and Boulder County offers a $70 monthly incentive for Boulder County employees who chose to vanpool as well as offering priority parking.
Incentives for North Front Range Commuters
North Front Range vanpoolers who use VanGo get up to $260 for commuting costs taken out of your paycheck before figuring in taxes. This lowers your taxable income, which puts more money back into your paycheck. Commuters who use a MyWaytoGo vanpool are eligible to receive a one-time $20 per rider subsidy, which is deducted from their fare.
Additional Information
For more information on monthly fees, setting up a vanpool, or to get connected with an existing vanpool, please contact us.