Traffic monitoring is crucial for urban mobility, road safety, and intelligent transportation systems (ITS). Deep learning has advanced video-based traffic monitoring through video question answering (VideoQA) models, enabling structured insight extraction from traffic videos. However, existing VideoQA models struggle with the complexity of real-world traffic scenes, where multiple concurrent events unfold across spatiotemporal dimensions. To address these challenges, this paper introduces \textbf{InterAct VideoQA}, a curated dataset designed to benchmark and enhance VideoQA models for traffic monitoring tasks. The InterAct VideoQA dataset comprises 8 hours of real-world traffic footage collected from diverse intersections, segmented into 10-second video clips, with over 25,000 question-answer (QA) pairs covering spatiotemporal dynamics, vehicle interactions, incident detection, and other critical traffic attributes. State-of-the-art VideoQA models are evaluated on InterAct VideoQA, exposing challenges in reasoning over fine-grained spatiotemporal dependencies within complex traffic scenarios. Additionally, fine-tuning these models on InterAct VideoQA yields notable performance improvements, demonstrating the necessity of domain-specific datasets for VideoQA. InterAct VideoQA is publicly available as a benchmark dataset to facilitate future research in real-world deployable VideoQA models for intelligent transportation systems. GitHub Repo: https://github.com/joe-rabbit/InterAct_VideoQA