TSB-2012 -1 2012 Transit Benefit Statutory Limit set at $125

TRANServe TRANSIT BENEFIT PROGRAM BULLETIN

Bulletin No:  TSB-2012 -1

Date:  December 7, 2011

SUBJECT:  2012 Transit Benefit Statutory Limit set at $125

PURPOSE:  This Bulletin provides updated guidance regarding a change in the statutory limit of the transit benefit.

BACKGROUND:  Currently, the maximum transit benefit for federal employees using mass transit and/or qualified vanpools is $230 per calendar month.  A provision of Executive Order 13150, Federal Workforce Transportation, dated April 22, 2000, requires that Federal agencies implement a transportation fringe benefit program that offers qualified Federal employees the option to exclude from taxable wages and compensation employee commuting costs incurred through the use of mass transportation and vanpools, not exceed the maximum level allowed by law. 

INFORMATION:  Internal Revenue Bulletin 2011-45, page 706, .12, Qualified Transportation Fringe Benefit, decreases the monthly tax free commuting costs from $230 to $125 effective January 1, 2012.  The link where you can obtain additional information is as follows: http://www.irs.gov/pub/irs-irbs/irb11-45.pdf

MORE INFORMATION:  If you have any questions or require additional information, please contact your Transit Benefit Manager.