Lower Commuting Costs Act of 2026 allows an above-the-line deduction for commuting expenses.

The Lower Commuting Costs Act of 2026 amends the Internal Revenue Code to establish an above-the-line deduction for commuting expenses. This deduction applies to travel expenses between a taxpayer's residence and place of employment or in the course of their trade or business. The deduction is limited to $4,080 per year, or twice that amount for joint filers. The deduction is subject to an inflation adjustment starting from taxable years after 2026. The bill also includes a safe harbor provision to limit the need for taxpayers to retain documentation of their commuting expenses.

Lower Commuting Costs Act of 2026 allows an above-the-line deduction for commuting expenses.

The Lower Commuting Costs Act of 2026 amends the Internal Revenue Code to establish an above-the-line deduction for commuting expenses. This deduction applies to travel expenses between a taxpayer's residence and place of employment or in the course of their trade or business. The deduction is limited to $4,080 per year, or twice that amount for joint filers. The deduction is subject to an inflation adjustment starting from taxable years after 2026. The bill also includes a safe harbor provision to limit the need for taxpayers to retain documentation of their commuting expenses.