2014 Qualified Transportation Fringe Benefits Update:
On Monday, November 4, 2013, the Internal Revenue Service announced new monthly limits on the value of qualified transportation fringe benefits that an employer can provide its employees without being included in taxable income. For 2014, the monthly limit on the amount that may be excluded from an employee’s income for qualified parking benefits is $250 (a $5 increase from the 2013 limit of $245). The combined monthly limit for transit passes and vanpooling expenses for 2014 is $130 (a $115 decrease from the 2013 limit).
The substantial decrease is due to expiration of the temporary “rule of parity” that made the combined limit for transit and vanpooling the same as the parking limit for 2012 and 2013.
For Transportation benefits, Congress could yet extend the rule of parity to 2014 at the last minute (like they did last year), making the transit limit equal to the parking limit. But at this point, the new limit is $130.
The monthly cap on the transportation fringe benefits are as follows:
- 2014 Parking: $250/month
- 2014Transit/Vanpool: $130/month
For more details go to: http://www.irs.gov/pub/irs-drop/rp-13-35.pdf