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Preserving the Transit Commuter Tax Benefit

Posted on December 23, 2013 by admin Posted in California, Transportation Legislation
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A lack of action in Congress could force the reduction of the transit commuter benefit back to $130 per month, a reduction from the current amount of $245. Both the transit and the parking commuter benefits (the latter also worth $245) are an employer-provided federal tax benefit designed to defray the cost of traveling for workers. The parking commuter benefit is permanent and rises with inflation, with the benefit increasing to $250 next year. By contrast, the transit benefit is usually extended, with the threat of returning back to $130 always present. However, an opportunity exists to let transit riders voice their opinion to their Congressmembers on the importance of either extending the transit benefit again or, better yet, making the higher transit benefit amount permanent and indexed to inflation.

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