Catch a tax-free ride to work — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Q I recall that you could use a tax-free fringe benefit for commuting and parking. Is this still valid? D.P., New York
A Yes, the fringe benefit for transportation expenses under Sec. 132 still exists. For 2008, the maximum monthly amount an employee may receive on a tax-exempt basis is $115 for qualified commuting expenses and $220 for parking fees. These amounts are adjusted for inflation on an annual basis.
Tip: For this purpose, qualified “commuting expenses”refers to the value of employer-provided transit passes and/or van pooling.