Getting Paid to Ride your Bicycle

A professional triathlete recently commented that a famous runner gets $500k / year from a shoe company to train.  I argue that no one gets paid to train, they get paid to sell shoes.

It seems however; that no matter how little, you can actually get paid to ride your bike to work.

There is a tax break for bicycle commuting.  It is in a section of the US Tax Code IRC 132(f)(1)(F)(iii)(II) which allows employers to exclude from your W-2 up to $20 per month of reimbursements paid to employees for bicycle commuting expenses as long as you regularly ride your bicycle to work.  Commuting expenses include the purchase, maintenance, repair, and storage expenses related to bicycle commuting.

In English.

If your employer so chooses, you can hand him a receipt for the purchase of your bicycle and he can pay you $20 per month until the bike is paid for.  Tires, tubes, co2, and maybe even your gym membership can qualify. 

If your employer doesn't want to pay an extra $20 per month, you and he can agree to have $20 per month withheld form your check before the calculation of taxes and withholding.  He then cuts you the check for the expenses.

If you are self employed this gives you another way to pay out of your business for what would otherwise be personal expenses.

Marc
marcbpetrinecpa.com