On Friday, December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  One of the provisions included in this bill was the extension of Commuter Choice Mass-Transit benefit contribution/expense limit for 2011 at $230 per month.
 
The Mass-Transit benefit was limited to $120 per month until the 2009 ARRA legislation which temporarily increased the limit to $230.  That temporary increase was due to "sunset" at the end of 2010 but the new law extends the increase for another year.  The increase will sunset 12/31/2011 and, unless extended again, the maximum monthly Mass-Transit benefit will revert back to $120 per month effective 1/1/2012, subject to cost of living adjustments, if any. 

Another change included in that bill allows the Dependent Day Care "Tax Credit" eligible considered expense limit to remain at $3000 for one child/dependent in day care and $6000 for two or more dependents in day care for 2012.  These limits were scheduled to revert back to $2,400 for one child and $4,800 for two or more beginning 1/1/2011.  The limits for the DCAP contributions remain unchanged at $2,500 per if you are married filing separate returns and $5,000 if you are married filing a joint return or single/head of household.

Note:  We advised our clients/participants to enroll for what they wanted in Mass-Transit benefits for 2011 up to $230/month and we would let them know if their enrollment was in excess of the new 2011 limits.  It looks like that gamble has paid off!

We have updated the Commuter Choice Brochure and are in the process of updating and will distribute the 2011 Commuter Choice Benefit Summaries (customized for each client) within the next two weeks.

HOLIDAY SCHEDULE UPDATE: 
FlexToday will be closed on Friday, December 24, 2010 and will close early on Friday, December 31, 2010.

Happy Holidays from FlexToday, Inc.

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