IRS Raises Income Exclusion for Parking Benefits | AccountingWEB

IRS Raises Income Exclusion for Parking Benefits

The Internal Revenue Service recently announced that employers may exclude parking benefits from employee wages up to a maximum of $180 per month for 2001, a $5 increase from the 2000 ceiling.

The announcement came in IRS Revenue Procedure 2001-13.

No increase is forecast for the existing exclusion amount of $65 per month for combined transit pass and vanpooling expenses.

The Employee Benefits Institute of America, a publishing group that provides guidance on various benefits plans, commented that the $65 ceiling on excludable transit pass and vanpooling expense is scheduled to increase to $100 at the end of 2001.

Tax rules applying to these and many other employer-provided benefits are contained in the latest issue of IRS Pub. No. 15-B, Employers Tax Guide to Fringe Benefits for Benefits Provided in 2001.

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