Is there a limit to the pre-tax MBTA pass deduction?
A. Yes. Beginning January 1, 2007, a pre-tax limit of $110 was imposed by the IRS and the State of Massachusetts Dept. of Revenue, applying to Federal and State Taxes. Note for Post Docs only: Non-employee post-docs are not eligible for a pre-tax deduction. For U.S. citizens or resident aliens, the Harvard-paid subsidy on the MBTA pass will be reportable income. For non-resident aliens, the Harvard-paid subsidy on the MBTA pass will be reflected as a taxable benefit. This amount will be added to reportable income with the appropriate tax withholding.
