Qualified Transportation Account
Independent Health can help you save on your commuting costs. Under Section 132 of the Internal Revenue Code, QTAs help you save money by using tax-free dollars to pay for certain transportation and parking expenses. QTAs provide you with a practical way to decrease your daily transportation expenses.
How It Works
A QTA is like a personal bank account where you can set aside a certain amount of money to cover qualified transportation and parking expenses incurred to and from your place of work.
How is a QTA funded?
You contribute to a QTA through payroll deductions. Your deductions can be made on a pre-tax basis, which means before taxes, FICA and Medicare are taken out of your paycheck.
What expenses qualify?
Transportation between your place of residence and place of employment in a commuter vehicle that has a seating capacity of 6 persons or more (not including the driver).
Any pass, token, fare card, voucher, or similar item (including an item exchangeable for fare media) that entitles a person to transportation on a mass transit facility (whether or not publicly owned); or provided by any person in the business of transporting persons for compensation or hire in a highway vehicle with a seating capacity of at least 6 adults (excluding the driver).
Parking provided to an employee on or near the employer’s business premises; or at a location from which the employee commutes to work (including commuting by carpool, commuter highway vehicle, mass transit facilities, or transportation provided by any person in the business of transporting persons for compensation or hire).