Qualified Transit Expenses

Qualified Transit & Rideshare Expenses (TRN)

Overview

A Transit (TRN) account allows you to pay for your mass transit commuting expenses using pre-tax dollars. Plans and contribution amounts can be started, changed, or stopped at any time during the year by contacting your HR department.

⚠️ Important Rules to Remember:

• Contribution Limits: Pre-tax contributions are subject to a statutory monthly maximum set by the IRS, which is adjusted annually for inflation. Any expenses exceeding the federal monthly limit cannot be reimbursed with pre-tax dollars.

• The 180-Day Look-Back Window: Expenses are only eligible for reimbursement if claimed within 180 days from the date of service. For example, an expense incurred in January cannot be claimed after July of that same year.

• Timing: Only expenses incurred during the exact time period you are actively contributing to your plan are eligible.

Eligible Transit Methods

You can use your TRN funds for public transportation methods used strictly for traveling to and from work:

• Mass Transit: Subways, commuter trains, buses, ferries, and streetcars.

• Passes & Vouchers: Fare cards, passes, vouchers, or tokens used for mass transit.

• Commuter Parking: Parking expenses incurred at a location where you park specifically to commute to work by mass transit (e.g., a train station parking lot).

🚐 Vanpooling & The "80/50 Rule"

You may use your Transit account for vanpools, provided the vehicle meets the strict IRS definition of a "commuter highway vehicle." To qualify, the vanpool must meet the 80/50 rule:

• Seating Capacity: The vehicle must seat at least six adults (excluding the driver).

• The 80% Mileage Rule: At least 80% of the vehicle's mileage for the year must be used for transporting employees between their homes and workplaces.

• The 50% Capacity Rule: On commuting trips, the number of employees carried must equal at least half of the adult seating capacity (excluding the driver). Example: In a 6-passenger van, there must be at least 3 adult passengers plus the driver.

• Note: This rule applies to employer-operated and employee-operated vanpools, but does not apply to public or commercial transit-operated vanpools.

❌ What is NOT Eligible?

The IRS strictly prohibits using Transit account funds for:

• Toll Fees & Gas

• Standard Carpooling: Standard family vehicles used for carpooling do not qualify because they fail the 80% workplace mileage requirement.

  • Tip: While the carpool vehicle's fuel/mileage isn't covered, the cost of parking that carpool vehicle at or near your workplace may qualify under a Parking (PRK) account.

📱 Using Your Transit Account with Uber and Lyft

In order to access your Transit Account funds through Uber or Lyft, your rides must be for pooled, shared, or line options (such as UberX Share / UberPool and Lyft Shared / Lyft Line).

How do these services work?

A Transit Account enables you to make your commute more affordable by setting aside funds on a pre-tax basis to pay for eligible workplace mass transit expenses. These rideshare platforms are eligible only if the vehicle used has a seating capacity of 6+ passengers plus the driver, and you are actively matching to share the route with other commuters traveling between a residence and place of employment.

• What is NOT covered: Standard, private rides (like a regular UberX, Lyft Personal, Comfort, or XL), premium rides, or driver tips.

How to Use Your Funds:

1. Open your Uber or Lyft app.

2. Add your commuter benefits debit card as a payment method in your app's wallet.

3. When requesting your ride, select the Shared / Pool option and ensure your commuter card is selected as the payment method.

• For UBER Pool/Share Directions, click here.

• For Lyft Line/Shared Directions, click here.

What if my transaction is getting denied?

• Low Funds: This frequently happens if the balance in your Transit account is too low to cover the full cost of the ride. You will need to pay out of pocket with another personal payment method and save the receipt. The receipt must clearly show the date, the amount paid, and the fact that it was a shared ride (UberPool/Lyft Line). Once your funds refill via your regular payroll contributions, you can submit a manual claim for reimbursement.

• Sufficient Funds but Card Fails: If you know you have enough funds but the card still does not go through, pay out of pocket, get a receipt showing the date, the amount paid, and the specific shared ride type, and submit a manual claim to us for reimbursement.

⚠️ Leaving your company soon? Learn how termination affects your funds and how long you have to submit final claims in our Transit & Parking Account Termination Guide.

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Contact Participant Services:

💬 Live Chat: Available via the User Portal

✉️ Email: [e-mail] 

📞 Phone: [phone] 

🕒 Support Hours: M–F, 8 AM – 5 PM MST