Tax Benefit For Commuters Extended

The following article appears in NJ Transit’s FYI Customer Update, February 2011:

Congress has continued the $230 monthly pre-tax commuter transit benefit allowance through Dec. 31, 2011.

Under the American Recovery and Reinvestment Act, the pre-tax payroll deduction limit for transit was increased to $230 per month on March 1, 2009, while maintaining the existing $230 limit for parking expenses.

Through commuter tax benefits, employees save on income taxes when they use pre-tax salary toward their mass transit commute and/or qualifying parking benefit. Employers also save on payroll taxes for each participating employee by lowering payroll costs. To find out how you can participate, visit

The extension of the commuter tax benefit was part of the Middle Class Tax Relief Act of 2010 passed by Congress on December 16, 2010.

Author: Michael Swayze

A retired county welfare agency administrator, who combines social work and computer skills to share information on community resources via the Internet since 1995. Active in voter engagement activities in Philadelphia, PA.

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