Comments on: Confusion, Sweet Confusion: The Commuter Relief Act

By: pocket bikes in california

pocket bikes in california — Fri, 02 Sep 2011 07:39:25 +0000

I am not a lawyer, but I could not locate language in the Commuter Relief form on his website, within which I was required to include my name and address. Additionally, according to Jon’s comment on Commute By Bike,

By: Jaime Roberto

Jaime Roberto — Thu, 16 Jun 2011 05:24:12 +0000

Stacey, thank you for the explanation, but I’m still a little confused. I’ve worked in a downtown area where our parking in the city garage was paid for by the company. I get that this was an untaxed benefit in the same way that health insurance benefits aren’t taxed. Does the benefit also apply to free parking that you find in most office parks? After all, the business is paying rent or a mortgage on those spaces. If the benefit is only for paid parking, it seems like this affects an exceedingly small number of people. That said, I’m ok with making paid parking a taxable benefit, but it doesn’t sound like a cause for righteous indignation.

As far as auditing the bike benefit, I don’t see how the IRS will prove that you didn’t ride your bike unless they do a stakeout, and I don’t see how they can do that retroactively.

The tax code is already too complicated. Let’s not complicate it further with this stuff.

By: Stacey Moses

Stacey Moses — Thu, 16 Jun 2011 02:02:32 +0000

JaimeRoberto,

Transportation benefits do not automatically show up on your paycheck- they are one of eight fringe benefits that employers can offer employees as a tax-free benefit. So technically, the government isn’t paying out of pocket for your parking or your commute, but employers/employees are not being taxed for this employee compensation. You can learn more about how fringe benefits work on the IRS website if you’re interested.

And the bureaucracy already exists- it’s called the IRS, an organization that performs audits in an attempt to keep people honest. Claiming a benefit that you haven’t earned would be tax fraud.

By: JaimeRoberto

JaimeRoberto — Wed, 15 Jun 2011 22:55:01 +0000

I’ll ask the question that I asked last time you posted on this, where is this $200 I would get if I drove? I’ve never seen that on any of my paychecks.

As for the $40/month, what kind of bureaucracy will need to be set up to ensure that the claimants are actually riding their bikes? Or can anybody claim the $40?

Count me as one of those who thinks “we should stop using government funds to subsidize transportation in general and let the economics of riding a bike versus driving a car speak for themselves”.

By: Eric

Eric — Wed, 15 Jun 2011 21:13:05 +0000

If politicians dealt with people outside of their districts, they might be accused of not representing their constituents’ needs. It can seem silly until you realize that the bulk of the anti-gay marriage support in California originated in Utah. It doesn’t stop people from looking up the proper zip code and faking it, of course.

By: Andy

Andy — Wed, 15 Jun 2011 17:54:29 +0000

The reason you can’t find $40 is because it’s so tiny compared to the $200 you get if you drive.