With the federal mass transit tax break set to expire at the end of the year, U.S. Senator Charles Schumer is pushing to make the benefit permanent. The benefit covers up to $230 per month from a person’s gross income to pay for mass transit commutes, an increase from the $120 benefit that was in place until 2009. Employees whose monthly mass transit fees are less than $230 can deduct the full amount from their paychecks, tax free. Until 2009, commuters who drove to work received a greater tax break than those who took mass transit.
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