(The following story by Alfonso A. Castillo appeared on the Newsday website on March 17, 2009.)
NEW YORK — Two out of three Long Island Rail Road commuters are not taking advantage of a recently increased federal tax benefit that would allow them to save up to $1,000 a year in their commuting costs, Sen. Charles Schumer and LIRR president Helena Williams said yesterday.
The recently passed federal economic stimulus plan nearly doubled the federal tax benefit for mass transit costs from $120 to $230 a month.
That means that most LIRR commuters whose employers offer the benefit through plans like TransitChek are now able to pay for most, if not all, of their monthly commuting costs with pretax dollars.
“The stimulus plan is supposed to help by putting more money in people’s pockets, and this benefit does just that,” said Schumer, who pushed for the new benefit in the Senate. He said about 50,000 commuters, about 36 percent, take advantage of it.
Standing together at the Garden City LIRR station, Schumer and Williams unveiled posters that will be displayed on trains and at stations, and other literature aimed at letting LIRR customers know about the benefit.
“The most important issue is that employees have to ask their employers,” said Williams, who called the program a “win-win” for workers and their bosses, because of the savings that employers accrue on payroll taxes.
The increased amount brings the size of the commuter benefit for mass transit users to the same level as that for drivers. Transit advocates had long criticized the disparity as discouraging the use of public transportation.
“I think it was bad policy,” said William Henderson, executive director of the MTA’s Permanent Citizen’s Advisory Council, who praised the adjusted benefit as “a good thing for riders.”
What you could save
The economic stimulus plan recently passed by the federal government nearly doubles the amount of pre-tax dollars that could be set aside for commuting costs from $120 to $230. The new amount covers much, if not all, of the cost of monthly tickets to Penn Station from most LIRR stations:
Station Price of a monthly Percent covered Percent covered
Ticket to Penn under previous under new increased
Station benefit benefit
Great Neck $185 64% 100%
Garden City $185 64% 100%
Syosset $211 56% 100%
Massapequa $211 56% 100%
Huntington $248 48% 92%
Babylon $248 48% 92%
Port Jefferson $278 43% 82%
Patchogue $278 43% 82%