Date: | 11/29/2017 |
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Referenced Sources: | Massachusetts General Laws |
- This page, TIR 17-12: Massachusetts Exclusion Amounts for Employer-Provided Parking, Transit Pass and Commuter Highway Vehicle Benefits for Taxable Years Beginning in 2018, is offered by
- Massachusetts Department of Revenue
Technical Information Release TIR 17-12: Massachusetts Exclusion Amounts for Employer-Provided Parking, Transit Pass and Commuter Highway Vehicle Benefits for Taxable Years Beginning in 2018
Table of Contents
I. Introduction
This Technical Information Release (“TIR”) explains the 2018 Massachusetts personal income tax exclusion amounts for employer-provided parking, transit pass and commuter highway vehicle benefits allowed to employees.
For taxable years beginning in 2018, the federal monthly exclusion amounts are $260 for employer-provided parking and $260 for transit pass and commuter highway vehicle benefits combined.[1] The Massachusetts monthly exclusion amounts are $260 for employer-provided parking and $135 for combined transit pass and commuter highway vehicle transportation benefits, as further explained below.[2]
II. Discussion
In general, for purposes of determining Massachusetts gross income, the Massachusetts personal income tax laws follow the provisions of the Internal Revenue Code (“IRC”) as amended and in effect on January 1, 2005. Accordingly, Massachusetts follows IRC § 132(f) as amended and in effect on January 1, 2005, which excludes from an employee’s gross income employer-provided parking, transit pass and commuter highway vehicle transportation benefits, subject to a monthly maximum.[3] IRC § 132(f)(6) provides for an inflation adjustment to those monthly maximums in the case of any taxable year beginning in a calendar year after 1999. Taking into account these inflation adjustments, the Massachusetts monthly exclusion amounts for taxable years beginning in 2018 are $260 for employer-provided parking and $135 for combined transit pass and commuter highway vehicle transportation benefits. The Massachusetts exclusion amount for combined transit pass and commuter highway vehicle transportation benefits does not include the increase in the federal exclusion amount for such benefits that was signed into law on December 18, 2015.[4] Massachusetts does not follow this amendment, and will not follow any future amendments to IRC §132(f), unless the Massachusetts Legislature acts to adopt such changes.
/s/Christopher C. Harding
Christopher C. Harding
Commissioner of Revenue
CCH:RHF:wem
November 29, 2017
TIR 17-12