Exceeding Qualified Parking Limits are Taxable (article)
The IRS issued an Information Letter (2014-0017) reminding taxpayers that there may be a tax consequence for providing qualified parking that exceeds the qualified parking limit. As background, IRC Section 132(f) provides that qualified parking expenses are available on a tax-favored basis up to certain limits. The indexed limit for 2014 is $250. This Information Letter reminds taxpayers that qualified parking that exceeds this amount is includible in the employee’s income and subject to FICA and FUTA withholding.
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