New 2013 Pre-Tax Transit Limits and Impending Transit Fare Hike

January 2013

The recently enacted American Taxpayer Act of 2012 increased the monthly pretax limit to $240.   The IRS has now released an annual inflation adjustment raising both the transit and parking monthly pretax limits to $245 for 2013. Prior to the passage of this law, the pre-tax benefit was limited to $125 per month for public transit expenses and $240 for parking expenses.

Also, as you may already know, New York’s Metropolitan Transportation Authority (MTA) has approved fare hikes effective March 1, 2013 with the following increases:

  • The cost of a single ride will rise from $2.25 to $2.50.
  • The cost of a 7-day unlimited ride Metrocard will rise from $29 to $30.
  • The cost of a 30-day unlimited ride Metrocard will rise from $104 to $112.

The MTA will also begin charging a $1.00 “new card fee” for the purchase of a new Metrocard effective March 3, 2013.  By refilling and reusing your current Metrocard, you will avoid this additional fee.  For up-to-date transit fare information, please visit the MTA’s website here.

If you wish to change your monthly transit deduction due to the increased monthly pre-tax limit as well as the impending transit fare increase, please complete the attached Transit Form and return it to Jing (Lisa) Zheng for processing.

Should you have any questions, please feel free to contact Jing Wu at Jing.Wu@mail.cuny.edu or Jing (Lisa) Zheng at Jing.Zheng@mail.cuny.edu.