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 www.njtransit.com/taxbenefits.
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.
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