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

January 29, 2013 | Uncategorized

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 3, 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 your Benefits Office Contact.