This feature allows you to remove funds from your commuter card (transit and/or parking wallet) and converts those pre-tax funds into a pre-tax credit. After funds are converted into a pre-tax credit, those credits will offset your payroll deduction for a future transit and/or parking order up to the pre-tax max. This feature is not available on all accounts, please follow the instructions below to see if your account is eligible.
How do the credits work?
Credits can be used for both transit and/or parking orders.
Credits only apply to the pre-tax portion of your commuter order(s); therefore, you can only convert up to the pre-tax max per benefit type per benefit month. For example, the 2024 IRS pre-tax maximum is $315. Therefore, you can convert up to $315 from your transit and parking balances for a total of $630 of pre-tax credits that can be applied to your future order.
If your order(s) is above the current pre-tax maximum, once the pre-tax credit applies to the order, you would then incur a post-tax deduction. For example, if you have a total commuter pre-tax credit of $400 on your account, and you place a $350 order, $315 of the pre-tax credit balance will be applied to your order, and then you would be deducted a post-tax payroll amount of $35.
Important: Requests to convert card balances to credits will take 3 business days to process, so make sure you request this at least 3 days before your next order cut-off date.
Request a commuter credit to use toward a future order
• From the homepage of the portal, select your parking or transit account.
• Select ‘About this Program.’
• Click the ‘Program Details’ button.
• If your account is eligible to convert your card balance to credits, you will have a link for ‘Commuter Card Balance to Credit Conversion’ in the Available Balances section on the right side of the screen. Click this link.
• Read the instructions, then select ‘Next’ to advance to step one of two:
o Step 1: Enter the amount that you would like to convert then select ‘Next’. ’(You cannot covert more than the maximum allowed per month, which is currently $315.00).
o Step 2: Carefully review your request. Once you click ‘Next’ your submission cannot be undone.
• Review details about your submission, then click ‘Next’ to go back to the Program Details screen.
Important: If your balance transfer to credit request has not completed before your next cutoff date, your credits will not be available until the next benefit month. To use credits, place a transit or parking order.
Frequently Asked Questions
When would I use this solution?
The daily commute can change quickly, and it can be a challenge knowing what you’ll need from week to week. If your method of commuting changed, you now have the flexibility to repurpose your pre-tax funds toward an alternate election.
Now you can use the self-service credit feature to convert unused pre-tax funds from your transit and/or parking commuter card balance to offset the cost of a future commuter order.¹
Are the credits available immediately?
Once you submit the request, it takes 2-3 business days for funds to be deducted from your balance and converted to credit.
Do the commuter credits have to be used within the month that they are created?
No, commuter credits do not have to be used within the month they are issued. Credits for a specific benefit month, such as May, need to be requested at least two to three business days before the final cutoff date, which is typically the 10th of the month prior. If you request the credit on the cutoff date itself, like the morning of the 10th, it will not be processed in time for that month's order. Instead, the credit will remain in your account and apply to your future order, whenever that might be.
Do I have to move all the money from an existing account balance when requesting a credit?
You can custom create the credit amount you want up to the maximum allowed per month, which is currently $315.00 per benefit type per benefit month.
How is the credit applied?
Once the conversion is complete and the credit is available on your account, it will apply to your next commuter order.
What happens to credits in your commuter account that have not been applied to an order if you leave your employer?
If you leave your employer, the credit balance is forfeited.
¹An employee is permitted to use their unused amounts from their transit benefit for other eligible transportation fringe benefits offered under the employer’s plan, such as qualified parking, (and vice versa) if (1) all the requirements outlined by the Internal Revenue Service (IRS) are satisfied. For specific questions regarding IRS requirements, please consult with a tax professional.
HealthEquity does not provide legal, tax or financial advice.