Guest Post by:
Elaine Quayle
Editor
Business & Legal Resources, Inc.
Yes, compromise does happen on Capitol Hill. Members of Congress have agreed to extend the tax benefits for transportation in a commuter vehicle and for transit unchanged through 2011.
The transportation tax benefits were originally increased by the American Recovery and Reinvestment Act of 2009.
Amounts of employer-provided transportation benefits that may be excluded from an employee’s gross income will continue to a maximum of $230 per month or $2,760 per year for either transportation in a commuter vehicle or transit passes. The same amount, $230 per month, is allowed for qualified parking. The applicable annual limitation for the qualified bicycle commuting reimbursement is $20 multiplied by the number of qualified bicycle commuting months during the calendar year. Remember, transportation benefits are also not subject to employment taxes.
For a look at commuting issues in the United States, go to http://hr.blr.com/HR-topics/HR-Administration/Commuting/National/.