Home--
Rail
Bus
Accessibility
Getting Around
Fares
Rider Tools
About Metro
Qualified Transportation Fringe
For taxable years beginning in 2010, 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, and under
§ 132(f)(2)(B), regarding the fringe benefit exclusion amount for qualified parking, is
$230.
http://www.irs.gov/pub/irs-drop/rp-09-50.pdf ![]()
Effective March 1, 2009, new federal legislation allows employers to provide employees with a tax-free or pre-tax transit benefit to increase from the current $120 to $230 per month for transit and a parking benefit up to $230 per month.
P.L. 111-5 American Recovery and Reinvestment Act of 2009 excerpt ![]()
SmartBenefits® is a better alternative. Read the Washington Post article, "GAO Finds Fraud in Commuter Program."
In June 1998, the Transportation Equity Act for the 21st Century (TEA 21) was signed into law. TEA 21 includes a provision amending the Internal Revenue Code (26 U.S.C. Section 132(f)). This amendment to the tax code allows employers to offer their employees public transportation benefits in addition to salary or wages, or allow the employee to elect to receive Metrochek as a pre-tax payroll deduction, or some combination of the two.
§1.132-9 Qualified Transportation Fringes. Questions and Answers.
Federal legislation prohibits cash or paycheck reimbursements when voucher programs are available.
Under federal tax laws, SmartBenefits® are available four ways. Many employers reap a 2-to-1 benefit. (Specific tax rules may vary according to state and type of enterprise.)