IRS commuter advantages permit staff to put aside pre-tax {dollars} for eligible commuting prices, comparable to public transportation, vanpools, or parking. These advantages are provided via employer-sponsored plans and can assist staff get monetary savings on their commuting bills.
Beneath the Tax Cuts & Jobs Act, the utmost quantity that staff can contribute to commuter advantages plans is $270 monthly in 2023 and 2024, and $300 monthly in 2025 and 2026. Employers might also contribute to those plans, however their contributions will not be excludable from the worker’s earnings. Commuter advantages plans generally is a useful means for workers to economize on their commuting prices and cut back their taxable earnings.
