Benefits & ERISA Law

IRS Updates Dollar Limitations for Qualified Transportation Fringe Benefits

By Suzanne Wynn

In Revenue Procedure 2008-66, the IRS has updated the dollar limitations for parking, transit passes, and carpooling or vanpooling fringe benefits. Specifically, effective for taxable years beginning in 2009, Code section 132(f)(2)(A) is updated to provide that the fringe benefit exclusion amount for parking is increased to $230. For qualified carpooling or vanpooling, the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle is $120. The aggregate fringe benefit exclusion for any transit pass it also $120.

For the qualified bicycle commuting reimbursement fringe benefit, the annual limitation is $20 multiplied by the number of qualified bicycle commuting months during the year.

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Full post as published by Pension Protection Act Blog on October 19, 2008 (boomark / email).