NYC’s new commuter tax benefit explained

amNewYork

The news erupted in early January when Mayor Bill de Blasio made a federal transit benefit mandatory for many New York City businesses. But coverage didn’t always explain how the program actually works. With the deadline for employers to provide it for their workers set for July 1, it’s time to buckle down and learn how it functions. The benefit was established by the federal government in the early 1990s, and President Barack Obama last year raised its cap from $130 to $255. This means that employees around the country can use up to $255 of their pre-tax earnings to pay for commuting expenses. The amount applies separately to parking and public transportation, and employees may use both.