IRS commuter advantages permit workers to put aside pre-tax {dollars} for eligible commuting prices, reminiscent of public transportation, vanpools, or parking. These advantages are supplied by means of employer-sponsored plans and will help workers get monetary savings on their commuting bills.
Beneath the Tax Cuts & Jobs Act, the utmost quantity that workers can contribute to commuter advantages plans is $270 per 30 days in 2023 and 2024, and $300 per 30 days in 2025 and 2026. Employers might also contribute to those plans, however their contributions usually are not excludable from the worker’s revenue. Commuter advantages plans generally is a helpful means for workers to economize on their commuting prices and cut back their taxable revenue.
