A聽provision in the fiscal cliff deal has increased the monthly limitation regarding the fringe benefit exclusion amount for transit passes and transportation in a commuter highway vehicle from $240 to $245 for the 2013 tax year.聽 The legislation also allows for a retroactive increase to include tax year 2012.聽 As a result, the 2012 exclusion amount was increased from the $125 limit that had previously been established to the new $245 limit.
Employers that have not furnished Forms W-2 for tax year 2012 should take into account the increased exclusion amount when calculating the amount of wages reported on Forms W-2.聽 Employers that have already filed 2012 Forms W-2 will need to file Forms W-2c, Corrected Wage and Tax Statement, to take into account the increased exclusion for transit benefits.
Additional guidance to help employers calculate the amount of wages reported on Forms W-2 聽can be found on the .