Commuter Benefit Worth $1,000 May Expire

A pretax commuter benefit set to expire on Dec. 31 currently affords commuters $1,000 a year in savings.

The benefit applies to bus and train riders as well as van poolers. It is taken out of employees’ wages for payroll tax purposes, improving employers’ tax liability. Employers saved approximately $300 million by offering the transit benefit in 2010. 

“Commuters already endure delayed trains and long rides to work and now some in Congress are going to ask them to pay $1,000 a year more for it,” said Rep. Steve Israel (D-N.Y. 2nd District) on Monday at a rally with the Long Island Rail Road Commuters Council calling on Congress to renew the benefit, according to a press release.