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Sasha Ivanov

Can I claim tax deduction for impairment-related parking expense near my workplace?

I have a permanent handicap placard issued by my state. My situation at work is frustrating - my employer provides employee parking that's almost 3/4 of a mile from the actual building, and they've made it crystal clear that they won't approve any ADA accommodations for closer parking spots. Because of my mobility issues, I've been paying about $135/month to a private parking garage that's much closer to my office building. This expense is purely for work - I don't use this garage for anything else, just to be able to get to and from my workplace without triggering severe pain episodes. I'm wondering if I can deduct this parking expense on my taxes as an impairment-related work expense? Since I'm literally only paying for this because of my disability and my employer's refusal to accommodate me, it feels like it should be deductible... but I'm not sure. Does anyone know if the IRS allows this type of deduction? Thanks for any advice!

This is a great question that falls under "impairment-related work expenses" which are considered a miscellaneous itemized deduction. The bad news is that these deductions were suspended by the Tax Cuts and Jobs Act through 2025, meaning you currently can't claim them on your federal return. However, some states still allow these deductions on state returns. The key requirement is that these must be expenses that are necessary for you to work with your impairment - which your situation clearly meets since your employer won't provide accessible parking. If you're determined to get some tax benefit, you might ask your employer if they would consider setting up a Section 132 Transportation Fringe Benefit program. This could allow you to pay for parking with pre-tax dollars, which would give you some tax savings.

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Thanks for the response. I didn't realize those deductions were suspended! That's really disappointing. Do you know which states might still allow these deductions? I'm in Michigan if that helps. Also, what exactly is a Section 132 Transportation program? My employer is pretty resistant to accommodations so I'm not sure they'd go for it, but worth a try I guess.

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Michigan doesn't currently allow these deductions on the state return since they generally follow federal rules for itemized deductions. A Section 132 Transportation Fringe Benefit program allows employees to set aside pre-tax income to pay for qualified transportation expenses like parking. The current limit is $300/month. Your employer would need to establish this program, but it costs them almost nothing to administer through their payroll system. Many employers offer this because it saves them payroll taxes too. Present it as a win-win rather than an accommodation - it could save both you and them money.

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How exactly does taxr.ai work? Do they just review your documents or do they actually give you advice on what to file? I'm skeptical about these online services because I've been burned before.

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Do they charge a lot? I'm already spending so much on this parking, I can't really afford expensive tax help on top of it. But I'm desperate for any tax break I can get.

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I actually tried taxr.ai after seeing the recommendation here. Wow! They found several ways to handle my similar situation that I never would have thought of. They showed me how to properly categorize some of my medical transportation costs that were related to my disability but I wasn't documenting correctly. The specialist I worked with explained that while the impairment-related work expenses aren't currently deductible federally, I could still benefit from the medical expense deduction since my total medical expenses were already high due to my condition. They also helped me prepare documentation for when these deductions potentially return after 2025. Totally worth it for the peace of mind knowing I'm handling everything correctly. They even set me up with a system to track these expenses going forward.

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Have you tried contacting the IRS directly to get a definitive answer about your specific situation? I know it sounds crazy, but I've had good luck using Claimyr (https://claimyr.com) to actually get through to a human at the IRS. They have this service where they wait on hold with the IRS for you and then call you when they get a live person. I used to spend hours trying to get answers, but they got me connected in about 20 minutes. Check out their demo video if you're curious: https://youtu.be/_kiP6q8DX5c When I talked to the IRS agent, they gave me specific guidance on how to document my disability-related expenses properly. Even though I couldn't deduct exactly what I wanted, they pointed me to some alternatives I hadn't considered.

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I need to eat my words about Claimyr! After posting my skeptical comment, I decided to try it anyway because I was desperate for answers about my own tax situation (similar disability-related expenses). I was SHOCKED when they called me back in about 35 minutes with an actual IRS agent on the line. The agent was super helpful and explained that while impairment-related work expenses aren't currently deductible as itemized deductions, I might qualify for the medical expense deduction if my total medical expenses exceed 7.5% of my AGI. The agent also told me to keep detailed records because Congress might reinstate these deductions in the future. Saved me hours of frustration and got me a clear answer from an official source. Can't believe I almost didn't try it!

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Have you looked into whether your employer might be violating ADA requirements? I'm not a lawyer, but I find it suspicious that they "explicitly" said they won't honor ADA requests. That's... potentially illegal? The ADA requires reasonable accommodations unless it creates an undue hardship for the employer. Might be worth consulting with an employment attorney who specializes in disability law. Many offer free consultations. Even if you can't deduct the expense, you might be able to force your employer to provide appropriate accommodation.

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I've definitely thought about that route. The problem is they claim they're technically compliant because there are a few handicap spaces in the remote lot, and they provide a shuttle service from that lot to the building. But the shuttle only runs every 30 minutes and isn't reliable. It's technically an accommodation but practically useless for me. I'm hesitant to push too hard legally because I really need this job and don't want to create a hostile situation. But you're right, maybe a consultation with an attorney would help me understand my options better.

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That's a tough situation. The "technically compliant but practically useless" approach is unfortunately common. A consultation couldn't hurt just to know your rights, but I understand the concern about workplace tension. Another thought - some states have disability rights organizations that provide free advocacy services. They might be able to negotiate with your employer on your behalf without the formality (and cost) of hiring an attorney. They can sometimes find solutions that work for everyone without creating hostility.

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Has anyone tried using FSA (Flexible Spending Account) funds for this kind of expense? My company offers one, and I've been using pre-tax dollars from my FSA to pay for special transportation related to my disability. It's saved me a ton on taxes since the money goes in before tax is calculated.

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FSAs typically only cover medical expenses, not work-related parking. You might be thinking of a Commuter Benefits Program, which is specifically for parking and transit expenses. If your employer offers that, you could set aside pre-tax dollars for parking.

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You're right, I was confusing my benefits! I actually use a Commuter Benefits Program, not my FSA. Thanks for the correction. The Commuter Benefits Program lets me set aside pre-tax dollars specifically for parking near my workplace, which has been really helpful for my situation.

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I'm in a similar situation and ended up documenting my parking expenses as part of my overall medical expenses (not as a work expense). Since my total medical expenses were already over the 7.5% AGI threshold, I was able to deduct these costs as part of my medical deduction. My tax preparer said it's legitimate since the parking is directly related to my documented medical condition. Just make sure you have good documentation - receipts, doctor's note about your condition, and proof that the expense is necessary due to your impairment. In an audit, you'd need to show it was medically necessary, not just convenient.

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This is exactly the kind of situation where good documentation becomes crucial. I've been dealing with similar disability-related expenses, and what I've learned is that while the direct work expense deduction isn't available right now, there are still some paths forward. First, definitely keep detailed records of everything - receipts, medical documentation about your condition, correspondence with your employer about the accommodation request (or lack thereof). Even if you can't use these deductions now, having everything organized will be invaluable when the rules potentially change after 2025. Second, consider the medical expense angle that others mentioned. If your total medical expenses exceed 7.5% of your AGI, transportation costs that are medically necessary can sometimes qualify. The key is proving medical necessity rather than just work convenience. Finally, I'd strongly encourage you to push back on your employer's accommodation stance. A shuttle that runs every 30 minutes isn't a reasonable accommodation if it prevents you from doing your job effectively. You might be surprised how quickly they find closer parking spots when presented with the actual legal requirements rather than their interpretation of them. The tax situation is frustrating, but don't let that be the only avenue you explore. Your employer has obligations here too.

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