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What is the California tax credit for purchasing a transit pass?
Wiki User
∙ 6y ago
The Federal tax code allows the use of tax-free dollars to pay for transit commuting and parking costs through employer-sponsored programs. Commuter tax benefits are regulated by the Internal Revenue Code, Section 132(f)-Qualified Transportation Fringe. As of January 2013, the tax code allows tax-free transportation fringe benefits of up to $245 per month per employee for transit expenses and up to $245 per month for qualified parking (including parking at BART stations.) Qualified parking is defined as parking at or near an employer's worksite, or at a facility from which employee commutes via transit, vanpool or carpool). Commuters can receive both the transit and parking benefits (up to $490 per month). Note: Effective January 1, 2014 the tax code will change the allowances of tax-free transportation fringe benefits up to $130 per month per employee for transit expenses and up to $250 per month for qualified parking.
Wiki User
∙ 6y ago
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