Checkmark iconCan I Write This Off?

Can I write off parking fees for work?

TL;DR

Parking fees for work can be deductible if they are necessary business expenses incurred while performing your job duties.

Detailed Answer

Parking fees are deductible if they are directly related to your work and are incurred while performing your job duties. For example, if you are self-employed and need to park at a client's location, these fees can be deducted as a business expense. However, parking fees incurred while commuting to your regular place of work are not deductible. Employees cannot deduct these expenses unless they are reimbursed by their employer under an accountable plan.

Where to Put It on the Tax Form

Schedule C (Form 1040) for self-employed individuals, under 'Car and truck expenses'.

Real World Example

A freelance photographer drives to various client locations for photo shoots. The parking fees incurred at these locations are deductible as they are necessary for performing her business activities.

Audit Risk & Documentation Tips

Keep detailed records of parking receipts, dates, and the business purpose of each trip. Maintain a log of business-related travel to support the deduction. Be prepared to explain why each parking fee was necessary for your business activities.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses)

Relevant Industries

FreelancersConsultantsSales ProfessionalsSelf-Employed

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025