FEDweek

Public Transit Subsidy Amount Remaining the Same

The “public transit subsidy” amount will remain unchanged at $255 maximum per month in 2017, the IRS has announced. Some agencies pay that amount directly to employees for using public transportation, van pools or other arrangements in their commuting—for example in the form of transit passes–while others allow employees to set aside that amount pre-tax, and others don’t provide either type of benefit. The monthly maximum also will remain $255 under a separate but rarely used program for parking costs at public transit stations and van pool staging areas. Terms of the programs commonly are set through bargaining, in unionized workplaces.