What do I need to do at tax time?

Wondering if you need to report your commuter benefits, parking, and mass transit on your annual income taxes?  The easy answer is no! 

What do I need to do?

Believe it or not, nothing! Throughout the year, with Alice's help, your employer's payroll has been recording your pretax deductions and reimbursements. Your W-2 will report your wages in boxes 1, 3, and 5. The numbers you see already factor in your pretax spending amounts and savings. Alice helped you save, right in your paycheck!

What do the numbers in Box 14 on my W-2 mean?

Depending on your employer's payroll system, you may see Alice pretax total deductions in Box 14. There is no location to report Alice Deductions on your individual income tax return.

This benefit is offered by your employer. The IRS says that you don't have to pay income taxes on expenses related to your commute to and from work for mass transit and parking (up to the maximum amounts each calendar month) when your employer offers this benefit as a paycheck deduction.

Commuting costs are not tax deductible on your annual return - The only way to exclude these purchases from taxes is with a commuter benefit offered by your employer, like Alice. Using this benefit does not affect how you file your income taxes annually.