It seems like the cost of everything is going up-- food, gas-- well everything. But I came across something that just might take the sting out of filling up at the pump -- ride your bike to work. Recently I heard that Boston has implemented a system of bike paths for commuting bike riders. What a great idea. But for those of us who don't live in Boston there is still a great opportunity to save gas and the environment and make a little money too.
There was a law enacted back in 2008 called the Bicycle Commuter Act that states that commuters who use their bikes to get back and forth to work can receive $20 a month from their employer. According to the law employers can reimburse employees--tax free--for reasonable expenses relating to their bike commute like equipment or repairs. This provision is for those who use their bike and don't receive any other commuter tax-free benefit. Yes, there are other benefits for those who car pool or van pool.
The provision is a lesser-known part of a larger Renewable Energy Tax Credit Initiatives legislation that will give cyclists a tax break only if they don't receive another tax free fringe benefit.
Here's how it works:
Your employer would reimburse you $240 a year (as long as you don't get a transit pass, qualified parking or other transportation benefit) then you an exclude up to $240 from your gross income. Tax free for the employer and taken right off the top for the employee.
If you don't have a bike or don't live close enough to ride your bike to work there are other benefits for carpooling or van pooling that could amount to $115 a month.
For more information check out the website www.bikewalk.org/bca.php
Have experience with this or know more about it? Feel free to share.
There was a law enacted back in 2008 called the Bicycle Commuter Act that states that commuters who use their bikes to get back and forth to work can receive $20 a month from their employer. According to the law employers can reimburse employees--tax free--for reasonable expenses relating to their bike commute like equipment or repairs. This provision is for those who use their bike and don't receive any other commuter tax-free benefit. Yes, there are other benefits for those who car pool or van pool.
The provision is a lesser-known part of a larger Renewable Energy Tax Credit Initiatives legislation that will give cyclists a tax break only if they don't receive another tax free fringe benefit.
Here's how it works:
Your employer would reimburse you $240 a year (as long as you don't get a transit pass, qualified parking or other transportation benefit) then you an exclude up to $240 from your gross income. Tax free for the employer and taken right off the top for the employee.
If you don't have a bike or don't live close enough to ride your bike to work there are other benefits for carpooling or van pooling that could amount to $115 a month.
For more information check out the website www.bikewalk.org/bca.php
Have experience with this or know more about it? Feel free to share.
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