IRS Releases 2012 Transportation Fringe Benefits Limits

On October 20, 2011 IRS has released the 2012 cost-of-living adjustments (COLAs) for qualified transportation fringe benefits. For 2012, the monthly limit on the amount that may be excluded from an employee's income for qualified parking benefits will be $240, which is a $10 increase from the 2011 limit. However, the temporary increase in the monthly limit on the value of the qualified transportation benefits exclusion for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees expires and reverts to $125 for 2012.