Client worked in NYC and had pretax withdrawals for Parking and public transportation from her wages. The moneys were held by an intermediary company and disbursed as she paid parking and transportation.

she recently retired; no longer commutes and is seeking to get the (approx) $1400 back expecting it to come as taxable income.

She is being told (by the intermediary) that the unused money 1, is not reimbursable to the employee; 2, it can only be applied to the employer as a credit to the employers fees for the intermediaries services, and 3, it is NOT ‘legal’ for the employer to reimburse or pay these monies to the employee.

Does anyone know if this is part of IRC and the unused funds are forfeit?