What is the “Commuter Deduction” I see on the 2006 Massachusetts Income Tax Form?
A. The Massachusetts Department of Revenue’s Personal Income Tax Commuter Deduction (discussed in TIR 06-14) may be available to employees who have after-tax deductions taken for their monthly MBTA Passes. The Commuter Deduction provides a deduction for “amounts expended by an individual for tolls paid for through a Fast Lane account or for weekly or monthly transit commuter passes for MBTA transit, bus, commuter rail or commuter boat, not including amounts reimbursed by an employer or otherwise.” The deduction applies to the portion of amounts expended by an individual that exceed $150, to a maximum of $750. For full text of the requirements, click here.
