Commuter Benefits Set to Expire

Many commuters are painfully aware of the significant costs related to commuting to work every day. The mass transit tax break, a widely used federal tax benefit, is set to significantly decrease at the end of this calendar year. In 2013, employers were allowed to withhold up to $245 per month in pretax wages from an employee’s pay to be used for mass transit commuting expenses. As things stand now, on January 1, 2014, the benefit will decrease almost 50% to $130 per month.

However, U.S. Senator Charles Schumer (D-NY) has introduced legislation titled the ‘Commuter Benefits Equity Act’ to extend this vital benefit.  The ‘Act’ must pass before January 1; retroactively reinstating the benefit is thought to be nearly impossible. Stay tuned…

About Ben Aspir

Benjamin Aspir is a Senior Tax Manager with expertise in tax, audit and accounting services. Member AICPA and New Jersey Society of Certified Public Accountants.

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