March 8, 2013

Commuter Fringe Benefit

Boston MBTA Commuter Rail riders should be aware of the change to the IRS pre-tax benefit for purchasing a monthly pass. In January, Congress changed the transit pass ceiling from $125 to $245. This means that for most commuters, more take-home money. (Framingham is in Zone 5 and it cost $252 for the monthly pass.)

In addition this change is retroactive to Jan. 1, 2012! It's unclear how the IRS will handle the retroactive change. There could be a payroll adjustments, or some 1040 federal tax form adjustment.

Here is the official change as mentioned in the Revenue Procedure 2013-15:

Qualified Transportation Fringe Benefit.
For taxable years beginning in 2013, the monthly limitation under § 132(f)(2)(A) regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $245. The monthly limitation under § 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $245.

Comments

Add your Comments

Feel free to leave a comment about this post.

- Feel Free to add HTML to your comment!