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Tax Free Benefits for Commuters in 2008 |
Employers may provide workers with up to $115 per month in tax-free
transit and vanpool benefits in 2007. According to
Internal Revenue
Bulletin: 2007-45 (November 5, 2007), for taxable years beginning in 2008, the monthly
limitation under Section 132(f)(2)(A) Qualified Transportation Fringe
Benefits regarding the aggregate fringe benefit exclusion amount for
vanpools (commuter highway vehicles) and transit passes is $115. The monthly limitation under Section 132(f)(2)(B)
regarding the fringe benefit exclusion amount for qualified parking is
$220. Commuters can receive both the transit and
parking benefits (i.e., up to $335 per month). Employers can allow
employees to use pretax dollars to pay for transit passes, vanpool fares
and parking.
These new limits are found under section 132(f) "Qualified
Transportation Fringe".
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6/10/08
