As a result of the American Taxpayer Relief Act of 2012, the IRS has released additional annual inflation adjustments and other tax changes for tax year 2013 that affect WageWorks benefit programs (please see this Compliance Alert for other limits):
Qualified transportation benefits - monthly transit and parking limit $245 for 2013
For the 2013 tax year, the monthly limit for transit passes and transportation in a commuter vehicle is $245, up from $240 for tax year 2012 (the legislation provided a retroactive increase from $125). Parking has also increased to $245 from $240 for the 2012 tax year.
Adoption Assistance Programs – 2013 limit is $12,970
The amount excludable from an employee's gross income begins to phase out under § 137(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $194,580. It is completely phased out for those with modified adjusted gross income of $234,580 or more.
Details are in Revenue Procedure 2013-15, available at http://www.irs.gov/pub/irs-drop/rp-13-15.pdf