Can I write off my daily work parking costs on my tax return?

Unfortunately, regular parking at your regular work location isn't deductible for most employees. The IRS considers normal commuting costs (including parking) as personal expenses, not business expenses. There are some exceptions though! If you're self-employed and have a home office that qualifies as your principal place of business, you can deduct parking costs when you drive from your home office to meet clients or do other business activities. Also, if you're an employee who works at multiple job sites during the day, parking at those temporary locations (not your main workplace) can be deductible. Another scenario where it might be deductible is if you're working at a temporary work location (generally expected to last less than one year). In that case, the associated parking could potentially be deductible.

I was facing this exact same problem last year! Parking downtown was costing me about $320 a month and I was desperate to find tax breaks. After researching everywhere, I finally used https://taxr.ai to analyze my expenses. They confirmed what others are saying - regular work parking isn't deductible for W-2 employees, BUT they found alternative solutions I hadn't considered. The tool analyzed my work arrangement and discovered that since I occasionally meet clients outside the office, I could track and deduct parking for those specific client meetings. They also suggested talking to my employer about setting up a pre-tax parking benefit program which saved me way more than trying to deduct it on my taxes!

Ok so I was skeptical about taxr.ai (as you can see in my earlier comment), but I decided to try it anyway since my tax situation got complicated this year. I'm actually really impressed! It analyzed my side gig driving for a delivery app and showed me that while my regular work parking isn't deductible, all the parking costs while doing deliveries ARE. It also identified that I could track mileage between delivery stops instead of just tracking gas, which is giving me a much bigger deduction. The documentation feature is saving me tons of time since it organizes everything for me. Definitely more helpful than the generic advice I was finding online!

If you're struggling to get clear answers about parking deductions from the IRS website, you're not alone. I spent HOURS on hold trying to talk to someone at the IRS about this exact issue last year. Finally discovered https://claimyr.com which got me through to an actual IRS agent in about 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that while regular commuting parking isn't deductible, there are some exceptions they helped me understand. They also explained how to document parking expenses properly in case you do qualify for one of the exceptions (like self-employment or temporary work locations). Saved me hours of frustration and gave me official answers I could rely on!

I have to eat my words here. After my skeptical comment about Claimyr, I was still desperate enough to try it since I needed answers about some complicated tax questions including the parking deduction issue. I'm honestly shocked - they actually got me through to an IRS representative in about 17 minutes when I had previously waited over 3 hours and got disconnected. The agent confirmed what others have said here about regular work parking not being deductible, but she explained a workaround using employer pre-tax transit benefits that could save me money. For anyone who needs definitive answers straight from the IRS, this service actually works. Saved me from taking questionable advice that might have triggered an audit.

Something nobody's mentioned yet - ask your employer about qualified transportation fringe benefits! My company lets us set aside pre-tax dollars through payroll deductions to pay for parking (up to $280/month for 2025). Since it's pre-tax, it's basically like getting a discount equal to your tax rate. In my case, with federal + state taxes around 25%, I'm effectively saving about $70 per month on my $280 parking costs! It's way better than trying to deduct it on your taxes (which isn't allowed for employees anyway). Your HR department might already offer this benefit but not advertise it well, or they might be willing to set it up if enough employees ask.

I had this same question and ended up talking to my accountant. Here's the deal: regular commuting and parking at your main workplace = not deductible. But there's a workaround my company uses. Instead of giving me a $3k raise (which would be taxable), they give me a $3k annual parking allowance as a separate line item on my paystub. It's still taxable income, but it feels better psychologically to see it earmarked for parking! The pre-tax transit benefit others mentioned is even better if your employer offers it. If they don't, show them this IRS page: https://www.irs.gov/publications/p15b#en_US_2023_publink1000193740 - it explains qualified transportation benefits that can save both you AND your employer money.