ISELIN - Right now, a federal transit tax benefit program allows commuters to buy $230-worth of train or bus tickets each month before their salaries are taxed, but the federal dollars behind that program have run out, officials say. Now, the program is returning to 2008 levels and only $125-worth of monthly commutes will be tax-free.
Because of this, some commuters are facing a rate hike in 2012 that will cost them an average of $1,000 per year.
A parking component of the program will be affected as well. Currently, up to $230 is covered by the tax benefit program. Starting in 2012, the benefit will increase by $10.