Good news for people who drive to work: The tax break you can claim for parking costs will go up in January. Bad news for people who ride the buses and trains: Your tax break will go down. A lot.
Yes, that’s bass-ackward. And yes, you’ve been through this drill before.
Right now, drivers and transit riders alike are allowed to set aside up to $245 a month in pretax income to pay for parking or fares on public transportation. That means they don’t pay taxes on the earnings they spend commuting to work, assuming their employer participates in the program. [Read More]