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October 8, 2014

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.

The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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