Economic Stimulus Includes $1,000 for Mass Transit Riders

[BR_Parkway]

http://redgreenandblue.org/2009/02/24/economic-stimulus-includes-1000-for-mass-transit-riders/

The Tax-Free Commuter Benefits, which let employees pay for mass transit tickets with pretax dollar, will increase the amount of pretax income that workers enrolled in employer-sponsored commuter benefits programs can use to pay for mass transit — from $120 per month to $230 per month.

“This law nearly doubles the savings employees can enjoy by using mass transit and sets us on a path to a future that’s both economically and environmentally sustainable,” said Larry Filler, President and CEO of TransitCenter and one of the key drivers behind this provision.

Employers that participate in the program will benefit as well. Companies offering the benefit can save up to an additional $100 per employee per year in payroll taxes.

According to the American Public Transportation Association, switching from driving to riding mass transit reduces CO2 emissions by 4,800 pounds per person per year.

[Stephanie]

1. that sucks for freelancers

How about a program that's not "employer based"?

[customerserviceguy]

3. There is one for freelancers

who are not tied to one employer. It's called "deducting your travel as a business expense".

[closeupready]

4. But don't you have to itemize? What if you don't have enough to itemize?

??

[customerserviceguy]

5. If you are an independent contractor

all of your earnings go on a Schedule C, which is the business income (and deduction) form.

Here's what it boils down to: do you get a W-2 form (which indicates tax withholdings) or a 1099 form, which indicates that you are a true independent contractor?

[MiniMe]

2. Yay. it is expensive to commute in DC

They allow $230 pre-tax for parking, but only $115 per month for public transportation. It's about time. It is $14 a day to park in the suburbs and to commute into DC.