Tax Code Section 132

Tax Code Section 132 defines "qualified transportation fringes" that employers can offer employees without tax withholding or reporting. This includes benefits like transit passes, subway or train fares, vanpooling costs, and qualified parking expenses. These benefits can be provided up to certain monthly limits tax-free, promoting commuting affordability. Importantly, the section sets rules on how these fringe benefits are treated for tax purposes, encouraging employers to assist with commuting costs while minimizing tax burdens for employees.