Twas the night before recess and all through Congress,
Not a creature was stirring, not even the House;
The Extender Bill was up in the air,
In order to adjourn and be off for the holidays at last,
Two parties decided to approve what was there,
And with that a retroactive transit bill would pass.
So they say the story goes…
As you may know, what is often referred to as simply “The Extenders Bill” passed the House and Senate and has now been signed by the President. The bill consists of a package of approximately 50 tax extensions, including the extension of mass transit benefits to parity with the parking limits — increasing the pre-tax mass transit limit from $130 to $250 per month for 2014.
While not unheard of in recent history, the extensions, including the mass transit limit, are only effective for the 2014 tax year. This leaves many employers left scrambling to try to make adjustments to taxable income for 2014. Additionally, commuters and employers alike have no resolution for 2015. While we briefly pause for the holidays, don’t forget to tell your Representatives and Senators to permanently increase the mass transit limit on parity with parking.
Happy Holidays from everyone at Benefit Resource!