Transit Benefit Extended

At the Train Station
At the Train Station – Multi-Modal Commuting

The law that brought the monthly transit payroll dedcution in line with the pre-existing $230 parking deduction has been extended another year. This is great news for multi-modal bike commuters and all commuters who ride transit. Now we need to work on getting the transit benefit permanently set at $230 to match the already permanent $230 parking benefit. Doing so is only fair and would put transit riders on an even footing with motorists.

More in the Washington Post

2 Responses to “Transit Benefit Extended”

  • Pete says:

    This is great news, as I’m a multi-moder, too.
    I did notice that the transit benefit info on the IRS website also lists a commuter stipend for cyclists – $20/month I think – that you can use for anything, including equipment and maintenance. The only catch is that you cannot get the bike stipend if you receive any other commuter benefit, like transit or parking.
    This is last year’s guide – I assume the rules stay the same for next year:
    http://www.irs.gov/pub/irs-pdf/p15b.pdf (see Pages 20 1nd 21)

  • Fergie348 says:

    Yes, my understanding is that last year’s rule will apply this year as well. As far as making this permanent I don’t think it’s likely. The tax code is a swiss cheese of special deals that should probably be tossed out and replaced by a fairer system, excluding all the special tax break deals including all the transporation breaks for driving and for commuting.

    If we stopped subsidising transporation and required all transit users to pay for use and upgrades based on mileage and weight (a fair proxy for road damage, I’d say), I wonder what those registration and fuel tax numbers would look like? It is regressive for sure, but unfortunately ‘pay for use’ is where we’re heading, with the current near financial collapse of state and local government budgets.

 
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