Now through December 31, 2013, the Federal Government now allows a pre-tax commuter benefit of $245 per month. That means you could save up to $1000 a year on your trip to and from work.
If you need to pay for parking in order to make your transit connection, the parking fees can be funded with pre-tax dollars up to an additional $245 per month.
To take advantage of these tax savings, your employer needs to opt-in to either the NJ TRANSIT BusinessPass program or one of the programs offered by the providers listed below.
When your employer participates in a commuter pre-tax benefit program they will actually reduce the amount of payroll taxes they have to pay.