Federal Transit Benefits Raised To $245 Per Month, Retroactive Payments Clarified

Transit riders will be able to receive even higher federal transit benefits -- and get back money for last year's transit costs.

The Internal Revenue Service has adjusted the maximum transit and parking benefits for up to $245 per month from $240 to take into account inflation. That comes after Congress raised the limit earlier this month for transit riders from $125 per month to $240 per month to match parking benefits as part of the "fiscal cliff" deal.

The IRS also issued guidance to employers on how to pull off a puzzling aspect of that legislation, which called for making the $240 transit benefits retroactive for 2012.
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