I heard that employees in many companies in US can claim their transportation costs for going to and from work as pretax.

How would I do that? I logged into ADP, which manages many companies' employees' payroll and tax information. I didn't find the instructions for how to claim transportation costs as pretax.

My HR didn't reply my inquiry. Is there a way?

Do I need to keep the receipts after buying subway fares for that purpose? I am in NYC.


This is not generally true. Some cities do offer public-transit incentive programs that work that way, but not all (I don't know about NYC). And not every company opts in even where it is available.

If your HR didn't respond, either they are still researching it, or they have never heard of it (which may mean it isn't available). I'd suggest you start investigating with the MTA to find out if it's really an option, and if so ask them for promotional literature you can send HR to suggest they opt in.

  • My company offers it. It just that I didn't receive reply on my email inquiry. – Tim Jan 26 '17 at 4:00
  • 3
    In that case, the obvious steps are to pick up the phone or walk over to their offices. – keshlam Jan 26 '17 at 12:48

You will have to ask HR for details about your company's specific program and how to use it. There isn't a single universal system. If they don't answer, keep asking. You could also ask your colleagues.

New York City has a Commuter Benefits Law that requires most employers with 20 or more employees to offer pre-tax transit benefits. So if this describes your employer, then such a program is probably available to you.

Keeping receipts may not be sufficient. The FAQ mentions that companies generally can't provide this benefit on a cash reimbursement basis. A common system is that you decide how much money per month you want set aside pre-tax for transit, and the company gives you a special debit card pre-loaded with that amount, which can only be used for transit purchases.

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