Tax Article - Massachusetts Commuter DeductionSince 2004 Massachusetts has allowed an individual to deduct certain commuting costs paid in excess of $150 for:
The commuting costs paid during the tax year are first reduced by the $150 threshold; but are limited to no more than $750. Therefore, an individual would have to incur at least $900 of commuting expenses in order to deduct the maximum amount of $750. Find out how our expertise in Tax Services can add value to your business. Email us or call us at 1 (888) 875-9770. For married couples filing jointly, the deduction applies only to the portion of commuter costs of each individual that exceeds $150. The total amount deducted may not exceed $750 for each individual up to a combined maximum deduction of $1,500. One spouse cannot transfer his or her excess deduction to the other spouse. Commuting costs must be reduced by any amounts reimbursed or otherwise deductible. Employees whose taxable wages are reduced by a payroll deduction for the purchase of MBTA passes are not entitled to the deduction. The deduction is claimed on Schedule Y, line 15 of the Massachusetts individual income tax return. MBTA Passes Eligible for The Deduction:
Tolls and passes that are not covered:
Monthly passes, FastLane reports, credit card statements, bank statements, pay stubs, and similar records will serve to substantiate the deduction. Updated May 2012 Share this:related links |
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