Revised Pretax Transit and Van Pool Monthly Limits
The University of California pretax deduction limit for the value of transit passes and van pool expenses has increased by $5 per month for 2019. This is in accordance with the Internal Revenue Service Revenue Procedure 2018-57.
The Federal limit for pretax transit and van pool expenses paid by payroll deduction will increase from $260 per month to $265 per month. The pretax deduction limit of $265 also applies for parking expenses. These pretax limits also apply for purposes of California income tax withholding.
Business and Finance Bulletin G-41: Employee Non-Cash Awards and Other Gifts has been updated to reflect the $265 per-person limit for an employee recognition award of either a one-month transit or parking permit pass.