TAX-FREE COMMUTING

I recall that you could use a tax-free fringe benefit for commuting and parking. Is this still valid?

Veronica

Veronica, yes, the fringe benefit for transportation expenses under Sec. 132 still exists. For 2009, the maximum monthly amount an employee may receive on a tax-exempt basis is $120 for January and February, and $230 for March through December for qualified commuting expenses; and $230 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.

Larry Kopsa CPA