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COVID-19 Commuter Benefits: One-Time Payout for Unused Funds

This act allows employees to receive a one-time payout of unused funds from their transportation fringe benefit accounts, accumulated before and during the COVID-19 pandemic. This means citizens can recover money set aside for commuting that was not used due to remote work or other pandemic-related changes. The distributed funds will be considered taxable income.
Key points
Allows a one-time distribution of unused funds from transportation fringe benefit accounts.
Payout applies to funds accumulated from March 13, 2020, until the act's enactment date.
The maximum payout is the lesser of the highest account balance since March 13, 2020, or the balance on the payout date.
Distributed funds will be included in the employee's gross income and are taxable.
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Additional Information
Print number: 117_HR_7754
Sponsor: Rep. Rice, Kathleen M. [D-NY-4]
Process start date: 2022-05-12