Public Employee Press

You can save taxes on every subway ride

Union members can save as much as $200 a year in taxes by signing up for the city TransitBenefit Program, which offers eligible employees the opportunity to use pre-tax earnings to pay for some public transportation costs.

A new tax law, IRC Section 132, lets members purchase their TransitChek MetroCard with pre-tax payroll deductions. You pay no federal, state, city, Social Security or Medicare taxes on these payments for the card.

In the TransitBenefit Premium Card Program, you receive a MetroCard that can be used for a continuous 12-month period for unlimited rides on subways and local buses, 24 hours a day, every day of the year.

The Premium Card costs $76 a month, divided among your paychecks. Members who are paid bi-weekly will have $35.08 deducted, for example. You can sign up at any time by submitting an enrollment form to your agency’s TransitBenefit Coordinator. Get the form from the Office of Payroll Administration at 212-669-8555.