For commuters

Save money on your way to work!

DeduCT-a-Ride is Connecticut’s program to promote federal tax law that allows employees to set aside pre-tax income to pay for commuting costs. As of January 2006, employees may set aside up to $105 a month ($1260 a year) of their salaries before taxes to pay for transit and vanpool fares. In addition, employees may set aside up to $205 a month ($2460 a year) to pay for qualified parking expenses.

If you spend at least $100 or more per month on your train, bus, ferry or vanpool fare, you may save over $400 annually on federal and state income taxes alone. Your employer saves, too – by eliminating the payroll taxes they would have paid on the amount you set aside. If you pay for parking, your savings will be even greater.

For more information, contact your Human Resources department and ask them about Connecticut’s DeduCT-a-Ride program. If you don’t already have DeduCT-a-Ride at your workplace, your employer can contact us.

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