Today, the Internal Revenue Service (IRS) released guidance on cost of living increases for 2020. As a part of that release, the IRS noted that the monthly cap for transportation fringe benefits will be $270 for 2020, this is an increase from the $265/month cap in 2019. The monthly cap applies to bother parking and transit/vanpool portions of the fringe benefit. The transportation fringe benefit is subject to a monthly cap that is revised annually based upon a cost of living adjustment. Individuals can recieve both a parking and a transit benefit for a combined benefit of $540/month, however, transit costs (nor parking costs) can exceed $270/month.
For more information on the cost of living increase click here
