How to Bicycle to Work for a Tax Deduction

It's great to save money and get exercise, and biking to work can be a beneficial way to achieve both. Not only will you save money on gas and car repairs, you can even profit by staying off the motorways. Former President Bush signed into law the Bicycle Commuter Benefits Act, which gives each commuter a tax break and credit for their environmentally sound commuting decision.

Instructions

1. Contact your employer and let him know your intention to begin biking to work. Ask if the employer is currently participating in the Bicycle Commuter Benefit Act. All employers are eligible, and there is no reason for them to deny the benefit or back out of the program.

2. Purchase a bicycle and save the receipts for all bicycle-related expenses. These can include repairs, tires, locks, helmet, clothes and bags. Present this information to your employer. Once your employer has this information, it must file with the federal government to participate in the program.

3. Begin commuting on bicycle to work. Bureaucracy in the federal government can take a while, but your employer should hear back from the government within 4 to 6 weeks after filing for participation. Stay on top of the application by contacting your employer weekly to follow up. Keep track of miles commuted and days spent commuting by bicycle. You should be able to take advantage of retroactive credits once your employer gets approval.

4. Tell your employer to take a $20 tax credit each month you ride to work on your bicycle. It is up to your employer, however, if it wants to pass those savings along to you. Also, you can file for reimbursement for all of your bicycle-related expenses. Your employer will then be reimbursed for the expenses.

5. Continue to collect your stipend for as long as you are commuting by bike. If you stop, be sure to tell your employer.

Resources

• Library of Congress: Bicycle Commuting Act
• BikeWalk.org Bicycle Commuting Act