March 1, 2009: DC Examiner "Stimulus package increases transit riders’ perks"

The federal economic stimulus package will give local public transportation riders a bigger break starting today, with the transit benefit allowance increasing from $120 a month to $230.

Some employers pass along that allowance as a direct tax-free perk, while others let employees pull the money from their paychecks before taxes. Some do both or offer it as a one-time bonus.

For those whose employers pay the full amount, that translates to $2,760 tax free a year. For transit riders who get the pre-tax benefit, the program can amount to 15 percent to 42 percent savings on commuting costs, according to Arlington Transportation Partners.

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