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QUESTION DETAIL
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Congress raised the limit of the pre-tax monthly transit expense from $125 to $240 (IRS notice 2013-8) for 2012 retroactively (in Jan 2013). My transit costs in 2012 were over $240 a month, but I chose to only withhold up to the pre-tax limit $125 through payroll this year and the rest was paid directly to the transit provider by me, out of pocket. Now that the limit has been raised retroactively, I would like to claim the difference pre-tax. Congress has advised my company to correct W-2s with the increase, but since I did not pay the after-tax through my company (I would have if I had known the limit was going to be increased), they will not amend my W-2 to reflect the increased limit. How can I fix this on my return (multiple calls to the IRS have gotten me no where, they do not understand the issue)?
ANSWER
The BIDaWIZ Team's Answer:
The IRS is getting flustered when you called because the IRS Notice 2013-8 doesn't provide relief to those individuals that paid their mass transit expenses with out of pocket dollars. The IRS is actually aware of this issue and plans to address it shortly. We believe the relief will likely be treated using form 843. However, guidance has still not been released.
