Congress Extends Dozens of Expired “Temporary” Tax Breaks for 2014 Including Commuting Costs

Congress passed a bill that includes a retroactive extension to January 1, 2014 for commuting costs.

The bill now awaits President Obama’s signature, which is expected soon, and includes equal treatment of commuting costs: All commuters may reduce their pre-tax income to account for their commuting costs. Under the law, however, those who drive to work and pay for parking are allowed to exclude more ($250 per month) than those who use mass transit ($130 per month). This measure again provides parity by also allowing mass transit riders to exclude $250 per month.

Paypro will be monitoring this legislation closely and will publish updates as more information becomes available.

If you have any questions as to how to properly perform Transit Deduction adjustments, please reach out to your Paypro Customer Service Rep or your Paypro Benefits Specialist. In the meantime, Paypro will be sending out further client communications regarding this legislation via email.