In IR-2011-104 and Revenue Procedure 2011-52, the Internal Revenue Service (IRS) announced that the monthly limit on the value of qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2012 rises to $240, up $10 from the limit in 2011.
Other Exclusions Revert to Previous Levels
The IRS also announced that the temporary increase in the monthly limit on the value of the qualified transportation benefits exclusion for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees expires and reverts to $125 for 2012. As previously reported, the American Recovery and Reinvestment Act of 2009, also known as ARRA, increased the monthly exclusion for transit passes and commuter highway vehicles under §132 of the Internal Revenue Code of 1986 (IRC) for part of 2009 and all of 2010 and 2011. Since this provision of ARRA expires December 31, 2011, the exclsuion reverts to the previous limit of $120, adjusted for inflation to $125 for 2012.
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Contac Vision Payroll today if you have further questions on the qualified transportation benefits exclusion.