IRS commuter advantages permit staff to put aside pre-tax {dollars} for eligible commuting prices, reminiscent of public transportation, vanpools, or parking. These advantages are provided by means of employer-sponsored plans and may also help staff lower your expenses on their commuting bills.
Underneath the Tax Cuts & Jobs Act, the utmost quantity that staff can contribute to commuter advantages plans is $270 per thirty days in 2023 and 2024, and $300 per thirty days in 2025 and 2026. Employers may contribute to those plans, however their contributions will not be excludable from the worker’s revenue. Commuter advantages plans could be a helpful approach for workers to save cash on their commuting prices and scale back their taxable revenue.
