Originally posted by wanderlust j. marshmallow:
Does this mean that the parking benefit is free to an employee, up to that limit? Or??
No. It means that your employer can elect to offer a pre-tax benefit to you for parking expenses, up to $2XX.
So basically, if you make $500 a month, and spend $200 in parking costs associated with your commute to work, the Federal Government will only take taxes out of the $300 you did not use to pay for parking. At an average tax rate of 28%, you could save about $56 a month.
If you need help convincing your employer to do this for you - I can also explain how your employer can save money by doing this as well. Convincing my employer to do this here in SF made me a hero until they remembered I am an adminstrator and they started hating me again.