That Commuter Tax Break That Saves You $1,000 A Year? Yeah, That Might Expire

If your accountant is worth what you pay him or her, chances are you benefit from a mass transit tax break that saves you and hundreds of thousands of other New Yorkers as much as $1,000 a year.

Well, that break could expire at the end of the year if Congress doesn’t act fast.

Fortunately, Senator Chuck Schumer is leading the charge to not only extend the break, but to make it permanent.

Crain’s New York explains:

The current benefit allows commuters to spend up to $245 per month of their pre-tax earnings on mass transit and commuter costs like parking. Over the last year, approximately 700,000 New York residents saved over $330 million through this benefit. More than 2.7 million commuters use the tax break nationwide.

“$330 million is a lot of money, any way you slice it,” Mr. Schumer said.

Until 2009, drivers received a greater tax break than those who took mass transit. That year, Mr. Schumer almost doubled the benefit to $230 per month. Without the extension, the benefit will drop back to the previous level of $125 per month.

Mr. Schumer is introducing the “Commuter Benefits Equity Act” that will seek to extend the program for another two years. Mr. Schumer said his ultimate goal was to make the tax benefit permanent, but for now he would be content for a simple extension.

The proposal is not without its opposition. Republicans in Congress are reluctant to support the bill, as well as any funding for mass transit.

Fortunately for Schumer, Republicans have their own list of interests they’d like to extend tax breaks for, and Schumer – a Senate agenda-setter – is threatening to withhold support on all tax extensions unless this goes through.