Effective January 1 2018, the Internal Revenue Service (IRS) announced the cost of living adjustments (COLAs) related to limits on certain qualified benefits exclusions.  

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Qualified Transportation Benefits and Adoption Assistance Benefit Limits for 2018

Nov 9, 2017

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.