RTA/CTA Transit Benefit Fare Program

The RTA/CTA Transit Benefit Program gives your company and its employees an opportunity to take advantage of tax law changes to reduce commuting costs. It helps employers support clean air and reduce traffic congestion.

Transit benefit programs were established by and are regulated under the Transportation Equity Act for the 21st Century (known as TEA-21) and Section 132 (f) of the IRS Tax Code. The “Qualified Transportation Fringe” provision allows employers to provide employees with up to $115 a month, $1,380 a year, for transit or vanpool commuting expenses as tax-free benefits.

When you participate in the RTA/CTA Transit Benefit Program, your company and employees can purchase CTA Transit Cards, Chicago Cards and/or RTA FareChecks and have them delivered to your company.

CTA Transit Cards

CTA Chicago Card Monthly, transit cards and passes can be used on CTA trains and buses and Pace suburban bus routes. CTA transit cards can be ordered in denominations of $30, $35, $50, $60 and $75. This includes the CTA’s regular and reduced fare 30-day passes.  The CTA Chicago Card Monthly is a smart card pass providing unlimited rides for an entire month. There is a non-refundable $5 replacement fee for any Chicago Card Monthly that is lost, stolen, or damaged. This fee is waived for first-time users.

RTA FareCheck

The RTA FareCheck is a voucher for transportation anywhere on the RTA system, the South Shore Railroad, and certain Amtrak Routes*. RTA FareChecks are purchased by employers and distributed to employees. Checks may be purchased in any denomination from $10 to $115. RTA FareChecks are tax-deductible to employers and a tax-free benefit to employees who use the CTA, Metra, Pace, the South Shore, Amtrak or vanpools.

(*Amtrak accepts RTA FareChecks for the purchase of multi-ride tickets. They can be used for the purchase of Monthly and 10-Ride Tickets for the Hiawatha Service trains between Chicago and Milwaukee. They can also be used to buy 10-Ride tickets for the Lincoln Service between Chicago and St. Louis; Illini and Saluki trains between Chicago and Champaign/Carbondale; Illinois Zephyr & Carl Sandburg trains between Chicago and Quincy; Wolverine Service between Chicago and Ann Arbor/Detroit/Pontiac; Pere Marquette between Chicago and Grand Rapids; and Blue Water between Chicago and East Lansing/Port Huron.)

For more information about RTA FareCheck call 1-800-531-2828 between 9:30 a.m. and 7:30 p.m. Central Time, or send us ane-mail. When you are ready to participate in the RTA/CTA Transit Benefit program and you would like to download an order form, click here:  RTA Transit Benefit Order Form.

Transit Benefits

These benefits can be provided either in addition to current compensation or in lieu of current compensation. They are not, however, allowed to be part of cafeteria plans or flexible spending accounts. Commuter benefits can be used as follows:

OPTION 1: Employers may give their employees up to $115 a month to commute to work by mass transit or eligible vanpools. The employer pays for the benefit and gets a tax deduction. Employees get the benefit amount tax-free.

OPTION 2: Employers may allow their employees to use their pre-tax income to pay for transit or vanpooling. Employers do not pay for the benefit but allow employees to take advantage of the tax savings by using their gross income to pay for qualified commuting expenses. Employees save over $400, and typically more than $500 in taxes they would otherwise pay. Employers see a reduction in their payroll costs on the amount set aside since they do not pay taxes on this amount.

OPTION 3: Employers may share the cost of commuting with their employees. Employers give their employees some amount of the qualified commuting expenses tax-free and let the employees set aside their gross income to pay the remaining amount up to the federal monthly limit of $115 a month.