Business & Finance

2016 Rail Commuter Tax Benefit Increases Take Effect

29bc226d4218384e0a00_17df933aea4f323af2af_rail_schedules_header.jpg
Credits: New Jersey Transit website
29bc226d4218384e0a00_17df933aea4f323af2af_rail_schedules_header.jpg

NEWARK, NJ -- NJ TRANSIT officials announced Wednesday that mass transit commuters 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.

On Dec. 21, 2015, elected officials met at the Walnut Street train station to announce the new benefits. U.S. Senators Bob Menendez and Cory Booker and Congressman Donald Payne, Jr. (N.J.-10) made an appearance to inform transit commuters of the new federal tax benefits to help pay the cost of rising bus and train fares. 

The federal spending and tax package, approved by Congress and signed into law in December, included a provision co-authored by Menendez that increased the maximum monthly commuter tax benefit for transit riders, and brings it permanently in line with the benefit enjoyed by those who drive to work. This provision took effect on Jan. 1 for those who rely on public transportation to set aside up to $255 per month in pre-tax earnings to pay their commuting expenses, amounting to an estimated annual savings of over $1,000 for transit riders who recently were forced to absorb a 9 percent NJT fare hike.

Sign Up for E-News

In the release issued Wednesday, commuters were urged to check with their employer’s Human Relations department to see if they can take advantage of new federal tax benefits that could help pay the cost of their NJ TRANSIT services.

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 Relations department to see if they participate. Since Jan. 1, 2016, New York employers with more than 20 employees were required to offer the transit benefit.

For more information, visit click HERE.
 

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Verona/Cedar Grove

HMH Mountainside Medical Center Breaks Ground on Medical Office Building

July 22, 2018

MONTCLAIR/GLEN RIDGE, NJ - Construction is underway at the site of the new Mountainside Medical Center Office Building located at Hackensack Meridian Health Mountainside Medical Center.

Starting with a groundbreaking ceremony on July 10, township officials from Montclair and Glen Ridge, joined Mountainside leaders on the grounds of the former School of Nursing location at 1 Bay ...

Cedar Grove Police Blotter

July 8, 2018

July 2, 2018 – July 8, 2018

On July 3, 2018 at 7:22 a.m., Ptl. Kristian Schneider responded to a David Road address to take a report of a suspicious vehicle. The resident observed a black four door vehicle stop in front of her home at approximately 5:20 a.m. She noticed that both passenger side doors were open and then observed two black males walking from the area of her driveway. She ...

New Trolley System to Connect Downtown Paterson with Great Falls

July 21, 2018

PATERSON, NJ- Standing beside two diesel powered trolleys on the site that the Paterson Art Factory calls home on Tuesday, Mayor Andre Sayegh showed that he is wasting no time in moving ahead on efforts to make the Great Falls, and the area around it, the centerpiece of the city’s much anticipated resurgence.

Calling the Art Factory a “partner”, Sayegh offered his ...

Upcoming Events

Carousel_image_c59c9acb1abc7cdb8c6a_mini_magick20180510-124227-5wdsnf

Mon, July 23, 9:00 AM

Sellitto Field, Verona

Verona Football 2018 Summer Camp

Sports

Mon, July 23, 7:00 PM

Hospital Auditorium, Glen Ridge

Tour of the Birthing Center

Health & Wellness

Carousel_image_c59c9acb1abc7cdb8c6a_mini_magick20180510-124227-5wdsnf

Tue, July 24, 9:00 AM

Sellitto Field, Verona

Verona Football 2018 Summer Camp

Sports

Calling Local Artists!

July 17, 2018

The Township of Verona is looking to run some new events around town focused on the arts and would like to hear from all the amazing local talent we have here in Verona and the surrounding towns. Please send an email to stneale@veronanj.org if you would like to hear more and get involved.

LOCAL BUSINESSES: Please contact if interested in hosting an exhibit at your location.