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Massachusetts Commuter Deduction

Amount excluded from taxable income

Amount included in taxable wages and so allowable for commuter deduction

Employer may provide transit passes tax free up to amount indicated per month

Cost of pass exceeding this monthly exclusion must be reported as Massachusetts taxable income to employee

Employer cost of pass

Employer commuter benefits

Example for Calendar Year 2013

 $ 189

$    64

 (125)