Commuter Benefits 101

2021 IRS Contribution Limits for Pre-Tax Commuter Benefits

By November 20, 2020 No Comments

The IRS released the 2021 pre-tax limits for mass transit and qualified parking. The limits are effective on January 1, 2021.

For 2021, the monthly limit for commuter benefits will be $270. That’s the same amount as 2020.

Pre-tax commuter benefits can be used to pay for:

  • Train
  • Bus
  • Subway
  • Trolley
  • Water Taxi
  • Light Rail
  • Ferry
  • Rideshare (Uber Pool, Lyft Shared)
  • Parking, Meter, Garages and Lots
  • Vanpool

It’s important to highlight that employees can participate in both mass transportation and qualified parking.

Watch the video to learn how commuter benefits work:

 

 

 

If you are interested in commuter benefits, download our Definitive Guide to learn more: