Here is another small change in the Tax Code many city commuters are missing: the Senate made bicycle reimbursement taxable.
Posted by
MDH (aka MDH)
Dec 18 '17, 06:52
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Current Law:
Qualified bicycle commuting reimbursements of up to $20 per qualifying bicycle commuting month are excludible from an employee’s gross income. A qualifying bicycle commuting month is any month during which the employee regularly uses the bicycle for a substantial portion of travel to a place of employment and during which the employee does not receive transportation in a commuter highway vehicle, a transit pass, or qualified parking from an employer.
Qualified reimbursements are any amount received from an employer during a 15-month period beginning with the first day of the calendar year as payment for reasonable expenses during a calendar year. Reasonable expenses are those incurred in a calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if the bicycle is regularly used for travel between the employee’s residence and place of employment.
Amounts that are excludible from gross income for income tax purposes are also excluded from wages for employment tax purposes.
House Bill: No provision.
Senate: The provision suspends the exclusion from gross income and wages for qualified bicycle commuting reimbursements. The exclusion does not apply to taxable years beginning after December 31, 2017 and before January 1, 2026.
Conference: Went with Senate bill.
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