Details of the Change:
Effective January 1 2018, the Internal Revenue Service (IRS) announced the cost of living adjustments (COLAs) related to limits on certain qualified benefits exclusions including:
- Qualified Transportation Benefits Exclusion
- Adoption Assistance Exclusion
1. Qualified Transportation Benefits Exclusion
- The monthly limit on the value of qualified parking increased by $5 from $255 for 2017 to $260 in 2018.
- The monthly limit on the value of transportation in a commuter highway vehicle and transit pass also increased by $5 from $255 for 2017 to $260 in 2018.
2. Adoption Assistance Exclusion
- The maximum amount that may be excluded from an employee's gross income annually for the adoption of a child will increase by $270 from $13,570 in 2017 to $13,840 in 2018.
- The maximum adoption credit allowed to an individual for the adoption of a child will also increase by $270 from $13,570 in 2017 to $13,840 in 2018.