TAX PREPARATION IN OAK BROOK - TAX BRAKE ON BIKE BENEFITS

QTA Consultants, Ltd./Renata Bliumaite

TAX PREPARATION IN OAK BROOK - TAX BRAKE ON BIKE BENEFITS

TAX BRAKE ON BIKE BENEFITS

Q: Is there a tax break for bicycling to and from work? S.D.R., Lombard, IL

A: No. The tax code doesn’t currently provide any tax benefits to individuals who commute via bicycle, nor does it reward employers for encouraging their use. Prior to the Tax Cuts and Jobs Act (TCJA), certain employees were eligible to receive tax-free employer payments to cover qualified bicycle commuting expenses. Under this fringe benefit, an employee could receive up to $20 a month tax-free ($240 annually) to cover the costs of a bike, repairs, improvements and storage. But the TCJA suspended this tax-free fringe benefit for 2018 through 2025.

Tip: If the exclusion is reinstated, it presumably would be indexed for inflation.