December 11, 2013

Equalizing Pre-Tax Benefits for Public Transportation Expens

Earlier this year, Congress pass a temporary extension for commuters that take public transportation to make it equal to what car-commuters could allow to pay their transportation expenses. This means that $245 a month worth of commuting-related expenses could be paid for tax-free. To be used to pay for monthly parking or monthly commuter rail pass.

Unless Congress acts this week, before the winter break, this extension will expire as scheduled on December 31st. This means that the tax break for transit riders will drop to $130 a month; while the parking benefit will stay at $250 a month. Framingham commuters will be getting a pay cut! It will now cost commuters $30 a month or $360 a year more. (Calculating the Pre-Tax savings between $245 and $130 and a tax rate of 27.65%)

This will make it more costly to ride the commuter rail and, in some situations, it will make more sense to drive into the city to park in a garage than it would be to take the commuter rail. The last thing that Boston needs is having additional cars on the road!

Framingham/Worcester MBTA commuters should ask their Congressmen to act now on the Commuter Parity Act which will make the pre-tax benefits permanent. Act today since Congress Christmas break is set to begin this Friday

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