Pretax Transit Account Max to Remain $125

Bad news for employees who commute to work using mass transit. The House of Representatives this week declined to approve legislation to restore the amount of tax-eligible benefit to $240. That was the amount allowed under the 2009 stimulus law.

The transporation bill approved by the Senate would have  restored the $240 maximum, but since the House failed to approve, the eligible reimbursement for mass transit will remain $125.

However, the maximum pre-tax parking benefit remains $240.

This doesn’t make sense given rising gas prices. If the goal is to get people out of their cars and onto subways and buses, then you should give them a tax break at least equal to what employees who pay for parking get.

But that will have to wait for another day.

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