How does pretax spending work?
When you spend on eligible commuter expenses with a card connected to Alice (or with Alice Card), Alice updates your paycheck so those expenses come out of your pay before federal income, FICA, and most state taxes are calculated. That means you save on taxes and keep more of what you make.
What's eligible
Pretax commuter benefits cover:
- Mass transit (subway, train, bus, ferry, light rail, vanpool)
- Parking related to your commute (street, garage, lot, parking apps)
Rideshare and personal-bike/scooter costs aren't eligible under IRC §132(f).
For the full list, see "What parking and transit expenses are eligible?" at help.thisisalice.com/article/52.
Questions? Email support@thisisalice.com or call (888) 431-4355.
Savings shown or implied — including any reference to "cash back" or take-home pay — are illustrative. Actual savings depend on your tax rate, benefit elections, and eligible spending each pay period. "Cash back" in Alice's materials refers to the federal, state, and FICA payroll taxes you don't pay on eligible commuter spending. It is income tax you keep, not a cash payment from Alice, your employer, or any third party. Alice does not provide cash back, rebates, or any direct financial benefit in connection with the Program. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.