Can I Deduct a Commuter Train or Bus Pass?

Taking public transit to work is a practical choice, but the deductibility of that cost is limited. Commuting costs, including bus and train passes used to get to and from your regular workplace, are generally not deductible as a personal expense. However, if your employer offers a qualified commuter benefit plan, you can pay for transit passes with pretax dollars up to a monthly limit set by the IRS. This reduces your taxable income without requiring you to itemize anything. Self-employed workers commuting to their own office also cannot deduct regular commuting costs, since the IRS considers the choice of where you live relative to your work to be a personal decision.