< Back to IRS

Jessica Nguyen

Can I write off parking expenses at my work location for tax deduction?

So I've been paying to park at my office building downtown for the past 8 months - it's like $275 a month which is killing me financially. My coworker mentioned that I might be able to deduct these parking costs on my taxes, but I'm not really sure if that's actually true or not? I work as a marketing coordinator and my company doesn't reimburse parking costs since they say it's a "personal choice" to drive instead of taking public transit (which would literally take me 1.5 hours each way). I'm trying to get ahead of my 2025 tax planning and figure out if these parking expenses could possibly be deductible. Anyone know the rules on this? I've spent like $2,200 on parking already this year and it would be awesome if I could get some tax benefit from this expense.

Unfortunately, commuting expenses (including parking at your regular workplace) are generally considered personal expenses by the IRS and aren't tax-deductible for employees. This includes costs for driving, public transportation, or parking at your regular place of work. There are a few exceptions though. If you're self-employed and have a qualifying home office that's your principal place of business, you might be able to deduct parking costs when you drive from your home office to meet clients or do other business activities. Also, if you work at multiple job sites in a single day, travel between these locations might be deductible. Another potential option: check if your employer offers a pre-tax parking benefit program. Many companies allow employees to pay for qualified parking expenses using pre-tax dollars through a Qualified Transportation Fringe Benefit program, which effectively gives you a tax advantage without needing to claim a deduction.

0 coins

What about if I occasionally have to visit clients from my regular office? Can I deduct parking fees for those days or trips? Also does it matter if my employer lists "transportation stipend" on my paystub even though it's just part of my salary and not actually a separate reimbursement?

0 coins

If you're visiting clients from your regular office, that's considered business travel, not commuting. You can potentially deduct those specific parking expenses or get reimbursed by your employer tax-free. Keep detailed records of dates, business purpose, and receipts for these trips to substantiate the business connection. Regarding the "transportation stipend" on your paystub - if it's included as taxable wages and not separated as an actual reimbursement, it's just considered part of your regular income. For it to be a true tax-advantaged transportation benefit, it would need to be specifically designated and administered as a pre-tax benefit or accountable reimbursement plan.

0 coins

After struggling with this exact question last tax season, I found this amazing tool at https://taxr.ai that analyzes your specific situation and tells you exactly what commuting/parking expenses you can deduct. I was confused because I split time between offices and sometimes meet clients directly from home, which creates these weird tax gray areas. I uploaded my receipts and the AI actually outlined exactly which of my parking expenses qualified as deductible business expenses versus non-deductible commuting costs.

0 coins

Does it work for rideshare expenses too? I Uber to work sometimes and have been tracking those costs but wasn't sure if they'd qualify differently than parking.

0 coins

Sounds interesting but how does it actually determine what's deductible? Like does it just follow the same IRS guidelines or does it find some magical loopholes that a regular tax person wouldn't know about?

0 coins

Yes, it absolutely works for rideshare expenses! The system analyses the same way - distinguishing between regular commuting (typically not deductible) and business travel between work locations or client meetings (potentially deductible). The tool uses the official IRS guidelines but applies them to your specific situation with more precision than general advice. It's not about "loopholes" but rather correctly identifying which of your expenses actually qualify under existing tax rules. For example, it helped me realize that my trips between our main office and satellite location were deductible business travel, not commuting - something I had been missing out on for years.

0 coins

Just wanted to follow up about my experience with taxr.ai after our conversation here. I decided to give it a shot with my complicated work travel situation (I split time between three different offices). The tool actually found over $1,800 in legitimate travel deductions I would have completely missed! It distinguished between my regular commute days (not deductible) and the days I was traveling between work locations (deductible business travel). It even helped me properly document everything, which I was nervous about. Definitely worth checking out if you have any kind of non-standard work travel situation.

0 coins

If you're having trouble getting a straight answer about parking deductions from the IRS website, I'd recommend using https://claimyr.com to actually speak with an IRS agent. I was in a similar situation last year with parking at different work locations and kept getting conflicting advice. I tried calling the IRS directly but sat on hold forever. The Claimyr service got me through to an actual IRS representative in about 15 minutes who confirmed exactly which parking situations were deductible in my case. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Definitely less stressful than waiting on hold for hours!

0 coins

Wait, how does this actually work? Do they have some special line to the IRS or something? Why would I pay someone to call the IRS when I could just call them myself?

0 coins

Sounds like a scam honestly. Why would anyone need a service to call the IRS? I've called them before and yes you wait on hold but eventually you get through. Why pay some random service?

0 coins

They use a technology that basically waits on hold for you and then calls you once an IRS agent is on the line. It's not a special access line - they're just dealing with the hold time so you don't have to sit there listening to the hold music for hours. I was skeptical too initially, but consider the value of your time. When I called directly, I was on hold for over 2 hours before I gave up. With this service, I went about my day and got a call when an agent was ready to talk. For tax questions that need official clarification (like specific deduction eligibility), getting an actual IRS answer can save you from potential audit issues down the road.

0 coins

I need to admit I was completely wrong about Claimyr. After dismissing it as a scam, I was still struggling to get through to the IRS about my parking deduction question. After three failed attempts and wasting nearly 5 hours on hold, I decided to try the service out of desperation. Not only did it work exactly as advertised, but I got through to an IRS agent who provided clear guidance on my specific parking situation. The agent confirmed that while my regular workplace parking isn't deductible, the parking fees I pay when meeting clients at their offices are legitimate business expenses I can deduct. Saved me both time and potentially hundreds in tax deductions I might have missed. Definitely not a scam!

0 coins

Have you asked your employer about setting up a commuter benefits program? Many companies offer pre-tax parking programs that can save you way more than trying to deduct it. You can set aside up to $300/month pre-tax for qualified parking in 2025. That's basically like getting a 22-37% discount on parking depending on your tax bracket. Worth asking your HR department about!

0 coins

I actually did ask about this last month! Unfortunately my company is pretty small (only 23 employees) and they said they don't have the administrative capacity to handle the commuter benefit program right now. They're "looking into it for next year" but who knows if that will actually happen. That's why I was hoping there might be some way to deduct it on my personal taxes. Sounds like I'm mostly out of luck though unless I start my own business or something...

0 coins

That's unfortunate about your company not offering the commuter benefits program yet. Small companies sometimes don't realize these programs can actually be fairly simple to implement through payroll providers. In your specific situation, you might want to keep detailed records of any work-related parking that isn't at your regular office. If you ever need to visit clients, attend work functions at different locations, or temporarily work at a different site, those parking expenses might qualify as deductible business expenses rather than commuting costs. The key is maintaining documentation proving these weren't your regular commuting expenses.

0 coins

Just wondering - does anyone use those parking apps to pay for their work parking? I'm trying to figure out the best way to track my parking expenses in case some end up being deductible (like when I go to our satellite office or client meetings).

0 coins

I use SpotHero for all my work parking and it's great for tax tracking! It keeps all your receipts in the app and you can download a report at year end. I tag business-related parking versus personal commuting - really helpful for separating what might be deductible. Also sometimes finds cheaper spots than the standard garages.

0 coins

I'm in a similar situation and found that the key is really understanding the difference between commuting expenses (not deductible) and business travel expenses (potentially deductible). Your regular daily parking at your main office unfortunately falls into the commuting category, even though it's expensive. However, I'd suggest keeping detailed records of any parking when you travel between work locations or visit clients - those could qualify as deductible business expenses. Also, definitely push your employer again on that commuter benefits program. Even small companies can often set these up through their payroll provider with minimal administrative burden, and it would save you way more than trying to claim deductions. One thing that helped me was calculating exactly how much the pre-tax parking benefit would save me annually ($300/month × 12 months × my tax rate) and presenting that to HR as a concrete employee benefit they could offer at low cost. Sometimes showing the real dollar impact helps get these programs prioritized.

0 coins

This is really helpful advice! I never thought about calculating the actual dollar savings from a pre-tax parking benefit to present to HR. That's a smart approach - showing them concrete numbers rather than just asking for "help with parking costs." I'm curious though - when you say "travel between work locations," does that include if I occasionally have to pick up supplies or documents from our storage facility across town? It's technically work-related but I'm not sure if it counts as "business travel" in the IRS's eyes. I probably do that trip 2-3 times a month and parking there costs about $15 each time.

0 coins

@fa358607c40b Yes, picking up supplies or documents from your company's storage facility would typically qualify as business travel rather than commuting! The key distinction is that you're traveling from your regular workplace to perform a specific work task at a different location, not traveling from home to your regular job. @9990b0965f21 For those trips to the storage facility, I'd definitely keep detailed records - date, business purpose ("picked up marketing materials for client presentation"), mileage, and parking receipts. At $15 per trip × 2-3 times per month, that could add up to $360-$540 annually in legitimate business expense deductions. The IRS generally looks at whether the travel is "ordinary and necessary" for your job and whether it's to a location other than your regular workplace. Picking up work supplies definitely meets that criteria. Just make sure you're traveling directly from your main office to the storage facility (not making it part of your regular commute from home).

0 coins

Great thread everyone! I'm seeing a lot of confusion around this topic, so let me add some clarity from someone who's dealt with this extensively. The fundamental rule is simple: regular commuting expenses (including parking at your primary workplace) are personal expenses and not tax-deductible, regardless of how expensive they are. This applies even if public transit isn't practical for your situation. However, there ARE legitimate opportunities many people miss: 1. **Business travel between work locations** - If you travel from your main office to client sites, other company locations, or temporary work assignments, those parking costs can be deductible business expenses. Keep detailed records! 2. **Pre-tax parking benefits** - This is often your best option. Even small employers can set up commuter benefit programs through payroll providers. At your $275/month parking cost, you could save $726-$1,188 annually in taxes (depending on your bracket) compared to paying with after-tax dollars. 3. **Mixed-use situations** - If you work from home some days and your home office qualifies as your principal place of business, travel from home to meet clients or conduct business could potentially be deductible. For Jessica's specific situation: Push harder on that commuter benefits program with concrete numbers. Show HR that offering pre-tax parking could save employees significant money with minimal administrative burden. Many payroll companies handle the setup automatically. Keep tracking any non-routine work travel though - those storage facility trips and client visits could add up to meaningful deductions!

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today