Date: February 11, 2013

Bulletin Number: CU-461



Retroactive Pre-Tax Transit Adjustment


To inform agencies of the steps the Office of the State Comptroller (OSC) will take to apply the Retroactive Increase in Excludable Transit Benefits.


The enactment of Section 203 of the American Taxpayer Relief Act (ATRA) increased the monthly transit benefit exclusion (under section 132 (f) (2) (A) of the Internal Revenue Code) from $125 to $240 per month for the period of January 1, 2012 through December 31, 2012.  

Also, as a result of ATRA, the IRS released additional annual inflation adjustments for the monthly limit for transit passes and transportation in a commuter vehicle.   Effective January 1, 2013, the transit limit has been increased to $245 for the 2013 tax year.

Effective Date(s)


Affected Employees

Employees who participated in the Commuter Benefits Program, for tax year 2012, with total monthly transit benefit deduction of more than $125.00 under deduction codes: 

  • 438 CUNY Pre Tax Transit Benefit
  • 439  CUNY Post Tax Transit Benefit

OSC Actions

OSC has issued a letter and a copy of Prior Year Social Security and Medicare Tax Refund Certification (Form AC 3206), to the affected employees informing them of the steps that will be taken to apply the retroactive transit exclusion amount.  


Questions regarding the Commuter Benefits program should be directed to Linda Sarubbi, University Director of Benefits at 1-646-313-8237.

Questions regarding this bulletin may be e-mailed to the Tax and Compliance mailbox.