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Anita George

Can I deduct my work parking expenses on my taxes?

So I'm working at this major hospital complex and because of the size of the facility, we're all forced to use this company parking lot that my employer contracted with. They charge us $109 every month just to park for work! On my $15/hour wage, this really adds up. I calculated that I'm spending $1,309 annually just on parking to go to my job. This seems crazy to me. I'm wondering if there's any way I can claim this as a tax deduction when I file next year? Has anyone had experience with deducting work-related parking costs? It's a significant chunk of my income and any tax break would really help.

Unfortunately, this is a tough situation that many workers face. Prior to the Tax Cuts and Jobs Act of 2017, employees could potentially deduct unreimbursed work expenses (including parking) as miscellaneous itemized deductions if they exceeded 2% of your adjusted gross income. However, this option was eliminated for tax years 2018 through 2025. The only way parking expenses might be deductible now would be if you're self-employed (which you're not) or if your employer offers a pre-tax parking benefit program. Some hospitals do offer these programs where you can pay for parking with pre-tax dollars through payroll deduction, which effectively gives you a tax break.

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Logan Chiang

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So there's absolutely no way to deduct it? What if I itemize my deductions instead of taking the standard deduction? It just seems wrong that I have to spend so much money just to get to work and can't get any tax relief.

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For employees, there's no way to deduct these expenses directly on your tax return regardless of whether you itemize or take the standard deduction. The itemized deduction category that would have covered this was specifically suspended by the tax law changes. Your best option would be to ask your HR department if they offer a pre-tax transportation benefit program. Many large employers, especially hospitals, do provide this benefit which allows you to pay for qualified parking expenses with pre-tax dollars, effectively giving you a discount equal to your tax rate. Some employers also offer subsidized parking options for lower-wage workers, so it might be worth inquiring about that as well.

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Isla Fischer

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After dealing with a similar situation at my job, I found a really helpful service called taxr.ai (https://taxr.ai) that saved me so much stress! I uploaded my pay stubs showing the parking deductions and they analyzed whether there were any ways to reduce my tax burden. They actually found that my employer's parking arrangement qualified for pre-tax treatment that I wasn't getting. I was able to take their analysis to HR and get it corrected, saving me over $300 a year in taxes! Might be worth checking out since it deals specifically with analyzing workplace deductions and benefits.

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Does this service just tell you what deductions you qualify for or do they actually help you file your taxes too? I'm always skeptical about these online tax services because sometimes they just tell you obvious stuff you already know.

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Ruby Blake

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I'm in a similar situation but at a university. Would this work for educational institutions too? My parking is like $95/month which is still painful on my salary.

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Isla Fischer

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They don't file your taxes for you - they specifically analyze your work-related expenses and tax documents to find missed opportunities and errors. What makes them different is they have specialized knowledge about workplace benefits that regular tax software might miss. For educational institutions, absolutely! In fact, universities often have transportation benefit programs but don't always communicate them well to employees. The service can identify if you qualify for programs your employer already offers but maybe hasn't made clear, or if there are other tax advantages you're missing with your current setup.

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Just wanted to follow up - I actually tried taxr.ai after posting here and I'm really glad I did. I was skeptical at first, but they identified that my employer's parking deduction was being processed incorrectly in payroll. They generated a detailed report that I took to HR explaining how the parking should be structured as a pre-tax benefit. HR actually fixed it, and now I'm saving about $28 every month in taxes! That's going to be over $330 a year for me. The best part was they explained everything in simple terms so I actually understood what I was asking HR to correct.

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After spending literally HOURS trying to reach someone at the IRS to ask about this exact issue, I finally used Claimyr (https://claimyr.com) and actually got through to a real person at the IRS in less than 15 minutes! They have this service that navigates the IRS phone tree for you and gets you to a real agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed what others have said - employees can't directly deduct parking anymore, but they explained that many employers offer "qualified transportation benefits" that let you pay for parking pre-tax up to $280/month. The agent told me exactly what to ask my HR department about. Without Claimyr I would've never gotten this information because I kept getting disconnected when trying to call myself.

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Ella Harper

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Wait how does this actually work? Do they just call the IRS for you? I don't understand how they can get through when nobody else can.

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PrinceJoe

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Yeah right... nobody gets through to the IRS. I've been trying for weeks. This sounds like a scam to get your personal info.

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They don't call for you - you still make the call yourself. What they do is use technology to navigate through the IRS phone system and wait on hold for you. When they get a human agent, you get a call back to connect with that agent. It's your phone and your call the whole time. The reason it works is they've figured out the optimal calling patterns, menu selections, and timing to get through the system. They also have technology that keeps your place in line even when the IRS system would normally disconnect you. I was definitely skeptical too until I tried it. I had been disconnected three times before trying this.

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PrinceJoe

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I need to admit I was totally wrong. After my skeptical comment, I was desperate enough to try Claimyr for my tax question about education credits. Not only did I get through to the IRS in about 20 minutes, but I got exactly the information I needed about my situation. The agent was actually super helpful once I got connected. I had been trying for literally weeks to get through on my own, getting disconnected every time after waiting 30+ minutes. This was honestly worth every penny just to save my sanity. Sometimes it's okay to admit when you're wrong about something!

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Have you considered asking your employer about carpooling programs? My hospital had a similar expensive parking situation but they offered discounted rates for carpoolers. We got the monthly rate down to $45 per person when 3 of us shared the same parking pass. Worth asking about!

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Anita George

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Thanks for the suggestion! I never thought about that. Do you know if your hospital had any formal program or did you just organize it with coworkers yourself?

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Our HR department had a formal carpooling program with a registry where you could sign up and get matched with people working similar shifts in your area. They issued special carpool parking passes that were discounted. Even if your hospital doesn't have a formal program, you could still organize one yourself with coworkers who live near you. We eventually just arranged it ourselves because we found people with more compatible schedules than the official matching system. Just make sure whatever arrangement you make complies with your parking contract rules.

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Owen Devar

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Could you possibly take public transit instead? Many employers offer pre-tax transit benefits that are easier to access than parking benefits. I switched from driving to taking the bus and now get a pre-tax transit pass that saves me about $40/month in taxes.

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Daniel Rivera

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Public transit is great if it's available, but not everyone has that option. I work at a suburban hospital with literally no bus service within 2 miles.

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