What is the commuting valuation rate for transportation?

The correct answer reflects the established standard for the commuting valuation rate for transportation provided to employees by their employers. According to IRS guidelines, the commuting valuation rate is designed to help determine the value of transportation between an employee’s residence and their place of work. This rate is often used to figure the transportation fringe benefits that must be reported as income.

When evaluating the answer in this context, $1.50 round trip serves as a reasonable benchmark based on the IRS guidance for the valuation of the employer's transportation benefit provided to employees. This amount is within a typical range recognized for commuting costs, allowing employers to report the transportation cost in a manner that reflects current standards and practices.

In the case of the other options, their amounts either exceed or fall short of recognized benchmarks typically outlined for commuter benefits. Consequently, understanding the guidelines surrounding commuting valuation rates allows for accurate reporting and compliance with tax regulations, ensuring that both employers and employees have clarity on the benefits provided.