A Qualified Transportation Benefit is an employee benefit plan that allows you to pay for commuting expenses with pre-tax dollars.
You’ll save money by reducing your taxable income. The QTB amount you elect will be subtracted from your gross income. When you incur an eligible expense, you’ll receive reimbursement from the funds you’ve set aside from your paycheck.
Planning ahead is important when signing up for your company’s QTB Plan. You must estimate your expenses for the upcoming year very carefully before enrolling in this benefit.
Parking Component: A Parking account can reimburse you for daily work-related expenses, such as parking lot fees and parking at a location for access to mass-transit or van-pooling sites.
Transit Component: A Transit account can reimburse you for expenses related to mass-transit fees, such as subway and train tokens and passes, bus and ferry fares and van-pooling expenses.
Bridge tolls, road tolls, gasoline and expenses incurred by your spouse or dependents are not eligible expenses.