Werner: Parking Perks That Pack a Tax Punch | Quick Tax Tip

Nonprofit employees face a new tax reality on fringe benefits.Quick Tax TipWith Art WernerCPE TodayFor years, employers could offer free or subsidized parking or public transit passes as a valuable fringe benefit without triggering extra tax for employees. Businesses could deduct the cost—up to an inflation-adjusted $325 per month in 2024—while employees enjoyed the perk tax-free.Click here for more Art WernerCatch more Art Werner, Wednesday, Sept. 3, for Tax Rumors, Episode 3, with CPA Steve Yoss, and hosted by CPA Trendlines’ Rick Telberg.That changed under the Tax Cuts and Jobs Act (TCJA). Now, if a business deducts the cost of parking or transit benefits, employees must count it as taxable income. Employers can still shield employees from the tax by choosing not to deduct the expense.