Benefits Buzz

Tax Law Expires for Mass Transit

Posted on January 6th, 2014

The maximum amount that can be reimbursed with pre-tax dollars for mass transit officially dropped to $130 per month for employees as of January 1st.  Last year the maximum reimbursement was $245 per month for mass transit so this may come as a shock to some employees. The decrease is a result of a tax law that expired at the end of 2013.

Meanwhile the maximum reimbursement for parking increased from $245 per month to $250 per month. There are still many people hopeful that the regulators will increase the maximum reimbursement for mass transit to be equal to that of parking.  Some are pushing for it to be increased retroactively to January 1st.

We can only cross our fingers at this point and will keep you updated if anything changes.

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