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One-Time Payout for COVID-19 Commuter Benefits Accounts

This act allows a one-time distribution of unused funds from commuter benefits accounts, which employees accumulated for work-related travel. These funds, previously tax-exempt, will now be included in gross income, but provide an opportunity to access frozen money that might otherwise be lost.
Key points
Allows a one-time payout of unused funds from transportation fringe benefit accounts (e.g., for commuting).
Distributed funds will be included in gross income and subject to taxation.
Payout is available for 6 months from the act's enactment, up to the lesser of the highest account balance since March 2020 or the current balance.
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Expired
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Additional Information
Print number: 117_S_4207
Sponsor: Sen. Gillibrand, Kirsten E. [D-NY]
Process start date: 2022-05-12