Last week, President Obama signed the American Taxpayer Relief Act of 2012 (ATRA) into law, which includes tax provisions that affect those who commute to work using mass transportation or vanpools.

As a provider of transit/parking reimbursement programs, Flexible Benefit Service LLC (Flex) believes that this parity is a necessary provision that helps keep more money in the pockets of the working population. And although it is temporary – it is a huge win for employers and their employees!

Legislative Update (1/14/13):

The IRS has released the official 2013 inflation adjustment for the transit/parking benefit in Revenue Procedure 2013-15. The 2013 monthly election limit for transit will increase from $125 to $245. Moreover, since this provision will be applied retroactively to January 1, 2012 there are further details to be awaited. In the mean time, employers should prepare to notify participating employees of this change, as well as prepare for election adjustments. The 2013 limit for parking reimbursement has also increased from $240 to $245 per month! Please check back to the Benefits Buzz Blog for future updates on this provision.