Technical Information Release  TIR 21-12: Massachusetts Exclusion Amounts for Employer-Provided Parking, Transit Pass and Commuter Highway Vehicle Benefits for Taxable Years Beginning in 2022

Date:	11/16/2021
Referenced Sources:	Massachusetts General Laws

I. Introduction

This Technical Information Release (“TIR”) explains the 2022 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 2022, the federal monthly exclusion amounts are $280 for employer-provided parking and $280 for transit pass and commuter highway vehicle benefits combined.[1] The Massachusetts monthly exclusion amounts are $285 for employer-provided parking and $150 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. 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, as stated above, the Massachusetts monthly exclusion amounts for taxable years beginning in 2022 are $285 for employer-provided parking and $150 for combined transit pass and commuter highway vehicle transportation benefits. 

 

                                                                                    /s/Geoffrey E. Snyder
                                                                                    Geoffrey E. Snyder
                                                                                    Commissioner of Revenue
 

GES:RHF:wem

November 16, 2021

TIR 21-12

 

[1] See IRS Revenue Procedure 2021-45.

[2] Transit pass and commuter highway vehicle transportation benefits are combined for purposes of sharing the $150 maximum monthly exclusion.  For example, if an employee receives a $100 monthly transit pass and a $100 monthly commuter highway vehicle transportation benefit, the $50 excess would be includable in the employee’s wages for income and employment tax purposes.