Schumer, Lowey Tout Tax Break for Hudson Valley Commuters

Lower-Hudson Valley Metro-North commuters can now get a tax break previously only available to people who drive to work.

Congress pass a spending package in December that increased a tax deduction for commuters from $130 per month to up to $250 per month, retroactive for 2015, and up to $255 per month for 2016, according to an article on lohud.com.

Sen. Charles Schumer, D-NY, along with Rep. Nita Lowey, D-Harrison, and White Plains Mayor Thomas Roach held a press conference at the White Plains Metro-North station Monday to let commuters know they can take advantage of the savings.

Lowey said the new deduction will give people who use public transportation “a more fair shake.”

For the complete article, read lohud.com here.

Schumer issued a press release that appeared on his website:

Standing at the White Plains Train Station in Westchester, U.S. Senator Charles Schumer today told Metro-North riders about the recently passed mass transit tax benefit. With Schumer’s successful efforts late last month, qualifying mass transit commuters are now eligible to receive up to $250 per month for 2015 and $255 per month for 2016 in tax deductions, with a cost-of-living adjustment after 2015. This mass transit tax befit was included in the recently passed tax “extenders package,” the Protecting Americans From Tax Hikes Act of 2015, which Schumer fought to pass. This legislation provides permanent parity between the parking and mass-transit commuter benefit, nearly doubling the value of the mass transit benefit. Schumer said not all commuters know about this cost-cutting benefit available to them or exactly how to claim it for themselves yet. During his visit, Schumer personally passed out key instructions prepared by his office to Metro-North users and discussed the benefit with riders.

“This is a huge victory for Westchester and the Lower Hudson Valley’s mass transit commuters that can save them hard-earned dollars on their expensive commutes. As the price of commuting continues to climb, this commuter tax break has become increasingly vital for Westchester, Rockland and Putnam residents, who experience a very high cost of living. Mass transit is the lifeblood of Hudson Valley and the greater New York City area, and that’s why I pushed so hard to have the federal transit benefit included in this must-pass bill,” said Schumer. “This recently-passed Protecting Americans From Tax Hikes Act legislation provides much-needed parity between the commuter benefit and the parking benefit.”

According to Metro-North, an average of 170,000 customers from Westchester, Rockland and Putnam use the commuter railroad each weekday. Schumer said that, with the passage of this legislation, these customers would be eligible for higher tax deductions to save them hundreds of dollars a year. Schumer, who was the original author of the legislation that provided parity between the mass transit and parking benefits, said that this benefit will put tax savings back into the pockets of residents in Westchester and throughout the Lower Hudson Valley, and will once again give Metro-North commuters the same tax break that those who commute by car receive for parking costs. Currently an individual making $60,000 of taxable income taking the current full mass transit deduction would only be able to save $390 a year. With Schumer’s provision providing parity between the mass transit and parking benefits, that same individual would be able to save $765 next year taking the full mass transit deduction, a savings of $375.

Schumer explained that this benefit is a tax deduction available to commuters who receive fringe benefits from their employer for riding the bus, taking the subway or using another form of public transportation to commute to work. The Senator said, however, that many commuters now eligible for higher tax deductions may not know that they must apply through their employer, which is simple to do and of no burden to either party. The benefit has saved many mass transit riders over $1,000 per year. Schumer said the benefit in 2013 covered up to $245 per month from a person’s wages to help pay for their mass transit commutes and provided parity with a previous benefit extended to drivers’ parking costs. In 2013 alone, approximately 700,000 New York area commuters saved over $330 million through this benefit.