How To Save Taxes on Commute Expenses?

I am going to tell you how you can save taxes on the dollars you already spend on commute expenses. To be specific in any mass transit or parking. So, if you are hoping that I can give you any tip to save money on gas, try gas buddy or buy gas from a wholesale club, other than that I have no other tip. But, if you take the train like I do, or park your car before taking the train, I can tell you one trick to save income taxes on those expenses.

I live in the Boston suburb, so I take the T to work. The monthly Link pass costs $90.My employer offer commuter benefits. If I contribute $100 to that, that comes out from pretax dollars. That means, if I do not contribute to commuter benefit, I will have to pay tax on those dollars. So, since I contribute $90 towards the commuter benefit, I save tax on that.

I think you should talk to your HR, or talk to the employer and check if you can get the commuter benefit so that you can save money on taxes too. This is very specific to my case, you can talk to your tax consultant too, if you are spending on business travel, you might be eligible for some tax breaks, your tax consultant will be able to help you with that.

I know the saving is not much and we have other ways to save significant amount of taxes, but penny saved is penny earned and you should know now how to save taxes on commute expenses especially if you are living neat the train stations and can take a train to work. Even if you park your car to take the train, you can save taxes on those expenses too.

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