In a new private ruling, the IRS says that reimbursements given to employees as part of a bike-sharing program aren’t tax-free. Employers may provide a tax-free monthly benefit of up to $20 to cover expenses of biking to work—including the bicycle’s cost and any repairs or storage costs—but this exemption doesn’t apply to bike-sharing programs.
Therefore, all bike-sharing reimbursements are subject to both income and payroll taxes. (IRS Information Letter 2013-0032, 9/27/13)
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