Public
Transportation - is it ever tax tax-free?
(Revised November 2012) In 2011, your employer could provide you with up to $250 per month in transit passes as a tax-free fringe benefit. In 2012, this benefit dropped to $125 per month. In certain cases, the exclusion also applies to the expenses relating to a vehicle provided by the employer to be used for going and from work. These exclusions apply to social security payroll taxes along with
income taxes. Therefore, not only is the cost of the
passes (up to the maximum exclusion) tax-free to you, your employer
will save on payroll taxes. To contact us or return to a different page, use the links on the left hand side of this page. |