Know your benefits
Transit Programs
Sep 25, 2008 2:30 PM
Take the subway or local bus to work? Here are some ways to save some money
Do you commute to your school each day by subway or local bus? You may be able to save more than $200 each year in taxes by participating in the city’s TransitBenefit Program.
The TransitBenefit Program allows teachers and other municipal employees to use pretax earnings to cover certain public transportation costs. Workers save money because the payroll deductions for transit expenses lower their taxable income and thereby reduce the amount they pay in federal, state and local taxes.
Shelter up to $115 monthly from income taxes
If you enroll in the city’s TransitBenefit Transportation Spending Accounts program, the Department of Education will withhold up to $115 each month in pretax income from your paychecks and deposit it in a special Transportation Spending Account (TSA). Participants receive a PIN-based TSA debit card to purchase MetroCards from the vending machines. The money in the TSA account cannot be used for any other purpose.
UFT members can set up a deduction plan tailored to their specific use of public transportation. Even occasional subway, city bus or New York City Transit express bus riders can save money by setting up a TSA. You may suspend deductions during the summer months if you wish.
Year-round MetroCard is another option
If you are already buying a 30-day unlimited-ride MetroCard for $81 every month, the city’s original Premium TransitChek MetroCard may suit you. The Premium Card is a special MetroCard good for a continuous 12-month period for unlimited rides on New York City Transit subways and local buses. The Premium Card is not accepted on express buses and, unlike the TSA, transportation deductions may not be suspended during the summer months.
Ask your school’s payroll secretary or timekeeper for an application form or download the form by going to the Department of Education Web site at www.schools.nyc.gov and typing Transit in the site’s search engine.
