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.