Unless you’re a tax code attorney or accountant, there’s pretty much no way you’re going to understand what the benefits available to you are…and forget about any non-cycling employer or HR person taking the time to figure out something for a mere $20 per month credit. Ã‚Â I just read it, as soon as I thought it made sense…the IRS threw some jargon in there to mix it back up.
Fortunately, the League of American Bicyclists has a Q&A that starts to clear it up, and they promise to update it frequently. Ã‚Â Click here, then scroll about halfway down the page.
In case you’re wondering what the benefit is, it’s two-fold. Ã‚Â You get up to $20/month as reimbursement for expenses related to riding your bike to work. Ã‚Â You’re employee saves on payroll taxes that would otherwise be paid on that $20. Ã‚Â If there are a lot of cyclists at your company, it could add up for them. Ã‚Â To make it easy on your employer, recommend that they check out this program from Accor.
Unfortunately for the self-employed, we can not claim ourselves as “employees” when it comes to issuing a credit to ourself. Ã‚Â Super lame.