Massachusetts announces 2021 exclusion amounts for commuter benefits
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Wednesday, January 20, 2021

Massachusetts announces 2021 exclusion amounts for commuter benefits

By Payroll and Entitlements Editorial Staff

A technical information release has been issued to explain the Massachusetts personal income tax tie-in to the federal personal income tax exclusion for employer-provided parking, transit pass, and commuter highway vehicle benefits allowed to employees. The Massachusetts monthly exclusion amounts for the 2021 tax year are $275 (previously, $270) for employer-provided parking and $145 (previously, $140) for combined transit pass and commuter highway vehicle transportation benefits. The Massachusetts exclusion amount is based on the adoption of Internal Revenue Code §132(f) as amended and in effect on January 1, 2005, including the annual inflation adjustments to the monthly exclusion amount, but does not include the increase in the federal exclusion amount that was signed into law on December 18, 2015. (Technical Information Release 20-16, Massachusetts Department of Revenue, December 16, 2020).

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