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Eligible Expenses
Under federal law, two types of commuting expenses are eligible for this benefit:
Only parking and mass transit costs incurred by you in connection with travel between your residence and your workplace are eligible. Costs that have been or will be paid by the Company, as for a business trip, are not eligible.
Out-of-Pocket Qualified Transportation Expenses
Not all transit and parking options are available through the Wage Works catalog, but you can still enjoy tax savings if you elect to be reimbursed and you report your eligible commuting costs as out-of-pocket expenses. Your reimbursement will be processed through your end-of-the-month paycheck.
To get tax savings on a reimbursement basis for commuter expenses that are not available through TRIP, you need to do the following by the election deadline:
If the amount you elected to withhold from your pay exceeds the amount of qualifying expenses that you incurred, you may carry over the unused amounts to pay for qualifying expenses that you incur in the future. However, according to IRS rules, you may lose any unused amounts if they remain unclaimed after 180 days of payment. You must make a request for reimbursement of qualified expenses you incurred prior to 180 days of payment of the benefit.
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Benefits effective June 6, 2008
© 2008 Marsh & McLennan Companies. All Rights Reserved. |
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