The IRS Commuter Benefits limits are set to change in January 2012. The current monthly limit on the tax benefit for transit and vanpools of $230 per month will revert to $125 per month in 2012. The temporary increase in the benefit was set up under the American Recovery and Reinvestment Act (ARRA) and is set to expire at the end of 2011.
This means that in 2012 an employer may give a tax-exempt commuter benefit to an employee, or allow an employee to use pre-tax income, of up to $125 per month for transit or vanpool passes. The amount an employer gives over $125 per month will be taxable income for the employee. The monthly limit for qualified parking provided by an employer to its employees for 2012 will increase to $240, up $10 from the limit in 2011. http://www.kingcounty.gov/transportation/CommuteSolutions/EmployerTaxBenefits/IRSCommuteBenefits.aspx
Article courtesy of King County WA website
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