Qualified Transportation Expenses
As mentioned in the January Benefit Beat (see Benefit and Compensation Changes Included in Fiscal Cliff Law), the American Taxpayer Relief Act has retroactively extended the maximum qualified transportation benefit applicable to mass transit and van pooling. In effect for 2012 and 2013, the mass transit benefit mirrors the qualified parking benefit which was $240 for 2012 and $245 for 2013.
If a plan can avail itself of the $240 maximum for 2012, guidance has been provided on how to correct the taxes (see IRS Notice 2013-08).
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.