A Legitimate Way To Pay Less Income Tax
By Alicia Dorr in News on Nov 12, 2007 6:32PM
Expanding on a program already used by over 2,000 companies in the Chicago area, the IRS is increasing breaks offered to income tax payers on commuting costs.
The service will soon increase the amount of pre-tax income employees can earmark from $110 to $115 per month, adding up to $400 or more in savings each year. This applies to paid transit, including Chicago-area public transportation and car pooling. Companies that enroll in the program can simply give the amount to employees and receive a tax break, allow employees to use their gross income, or share the cost with the employees. Many companies and individuals don't know about the program, so ask your employer to get their head in the game if you're not getting these breaks. Because of these recent increases some of the monetary info is out of date, but you can learn more here and here.
Commuting photo by hateeecs2002