Commuter Tax Benefit Increased!
The American Recovery and Reinvestment Act provides the long sought equalization of the parking and transit tax benefit. Beginning March 1, 2009, employers may offer up to $230 per month in tax free transit commute expenses. This provision expires January 1, 2011.
The increased maximum equalizes the transit and parking portion of the transportation fringe benefit, bringing parity to the financial incentive to take public transportation or drive to and from work. Eliminating the disparity between the monthly caps equalizes the financial incentive to take public transportation or drive to work alone. The change will save commuters with the longest and most costly commutes more than $1,000 per year on average in tax savings.
More information will be available soon.