IRS commuter advantages permit staff to put aside pre-tax {dollars} for eligible commuting prices, reminiscent of public transportation, vanpools, or parking. These advantages are supplied by employer-sponsored plans and might help 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 may contribute to those plans, however their contributions should not excludable from the worker’s earnings. Commuter advantages plans generally is a invaluable approach for workers to economize on their commuting prices and scale back their taxable earnings.
