MONTHLY COMMUTER TAX BENEFIT INCREASES TO $255 FOR 2016
Mass Transit Riders Could See Annual Savings of $1,000
FOR IMMEDIATE RELEASE
JANUARY 6, 2016
NEWARK, NJ -- Mass transit commuters are urged to check with their employer’s Human Resources department to see if they can take advantage of new federal tax benefits that could help pay the cost of their NJ TRANSIT services.
Customers can now set aside up to $255 per month in pre-tax earnings for public transit expenses, amounting to an estimated $1,000 annual savings. Actual savings vary depending upon individual costs.
The federal spending and tax package, approved by Congress and signed into law in mid-December, increases the maximum monthly commuter tax benefit for transit riders. Previously, transit riders were able to put aside $130 a month.
“Pre-tax commuter benefits encourage the use of mass transit, which gets people out of their personal vehicles and onto trains, buses and light rail vehicles, reducing traffic congestion and pollution,’’ said NJ TRANSIT Interim Executive Director Dennis Martin. “Commuters who take advantage of these programs will see a boost in their wallets, while employers who offer this incentive to their employees benefit from reduced payroll costs.’’
Additionally, legislation was enacted to make the qualified parking tax-excludable amount at $255 a month, up from the $250 previously allowable.
Most large employers offer the transit benefit, but commuters are urged to check with their company Human Resources department to see if they participate. Since January 1, 2016, New York employers with more than 20 employees were required to offer the transit benefit.
For more information, visit njtransit.com/taxbenefits.
About NJ TRANSIT
NJ TRANSIT is the nation's largest statewide public transportation system providing more than 938,500 weekday trips on 257 bus routes, three light rail lines, 12 commuter rail lines and through Access Link paratransit service. It is the third largest transit system in the country with 165 rail stations, 62 light rail stations and more than 19,000 bus stops linking major points in New Jersey, New York and Philadelphia.