TSB-2013-06 DOT Federal Employees, (including FAA) American Taxpayer Relief Act of 2012 Transit Benefit Implementation Guidance

TRANServe TRANSIT BENEFIT PROGRAM BULLETIN

Bulletin No: TSB 2013-06

Date: January 11, 2013

SUBJECT: DOT Federal Employees, (including FAA) American Taxpayer Relief Act of 2012 Transit Benefit Implementation Guidance

BACKGROUND: Executive Order 13150 requires DOT to provide a Mass Transportation and Vanpool Transportation Fringe Benefit Program that subsidizes employee commuting costs incurred through the use of mass transportation and vanpools, not to exceed the maximum level authorized by 26 U.S.C. 132(f)(2). DOT will increase the amount provided to employees up to the IRS authorized maximum.

The American Taxpayer Relief Act of 2012 increased the Internal Revenue Service (IRS) exclusion from income for mass transit to be in parity with parking benefits.

INFORMATION: DOT will implement the increase effective February 1, 2013 up to $245 per month.

Required Action: No Action is necessary if your certified monthly commuting costs have not changed since the DOT recertification period of May 2012. An increased benefit amount up to the statutory limit will be submitted for you. If your commuting costs changed since May 2012, you must complete a recertification application at https://transitapp.ost.dot.gov . Your supervisor must approve this application by January 16th to meet the Transit Authority cut-offs and ensure you receive this change to your benefit by February 1, 2013. Any change not received by this date will be processed as of March 1, 2013.

CONTACT: Please contact your Modal Transit Benefit Coordinator.