MMC Benefits Handbook
Under federal law, two types of commuting expenses are eligible for this benefit:
- mass transit fares, including tickets, passes, tokens, vouchers or fares for buses, trains, subways, streetcars, ferries and qualified vanpools (transportation in a personal car, carpool, or taxi is not eligible). Uber and Lyft currently do not offer eligible services that meet IRS requirements. Lyft and Uber suspended compliant shared rides in March 2020, at the onset of COVID-19.
- parking fees at or near your workplace or parking at a location from which you commute to your workplace via mass transportation or a carpool, such as a park-and-ride lot (residential parking is not eligible).
For information on partnerships HealthEquity has to use pre-tax dollars to pay for commuting or parking, such as SpotHero or Uber, contact HealthEquity at + 1 877 924 3967.
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 HealthEquity's 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 HealthEquity. You will be reimbursed via check or direct deposit. If you elect Pay Me Back reimbursement for your commute, go into your account in HealthEquity, click on "profile" and then click on "reimbursement method" to set up direct deposit information.
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:
- Go to the HealthEquity`s website.
- Choose "Place Commuter Order."
- For Transit: If you select a provider that is not in the HealthEquity catalog, you will be prompted to describe the pass you're looking for and one of the HealthEquity customer service representatives will contact you. If you prefer, you may contact HealthEquity directly for assistance.
- For Parking: If you select a provider that is not in the HealthEquity catalog or select to contract space, park at a meter or cashbox, or park at different places throughout the month, you can elect the amount you want withheld from your pay to cover qualified expenses that you expect to incur after your election. Then, buy the service from the parking provider and obtain a receipt if available. Follow the instruction on HealthEquity's website for submitting a receipt and certifying that the expenses qualify for reimbursement.
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.