As tax time approaches each year, many taxpayers try to get creative with their deductions. Most regular work expenses, including parking fees, are not deductible. However, you can deduct these expenses if you incur them while traveling for work purposes. Save your parking receipts in case you decide to take any parking fee deductions.
If you must move to take your first job, you can deduct expenses related to the move -- including parking tolls -- from your next year's taxes, according to Kiplinger.com. Save all receipts from parking fees having to do with your move so that you can take this amount off your taxes. Do not deduct expenses without proof in case the IRS audits your return.
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As of April 2011, if you are in the National Guard or the military reserves, you may deduct expenses, including parking, that have to do with traveling to drills or meetings. In addition to parking expenses, you can deduct meals and entertainment related to your travel for your job duties, and you can also deduct a standard amount per mile that you travel. As of April 2011, you may deduct 50 cents per mile of travel from your taxes.
Regular vs Irregular Expenses
You usually cannot deduct expenses related to going back and forth to your regular job, including parking fees, from your taxes. However, if you travel for business-related purposes such as training or meetings in a different work location, you can deduct parking fees and mileage from your taxes. You can also deduct parking fees if you are required to go somewhere else in the course of doing your job. For example, if you must pay to park while delivering supplies for your employer, you may take those fees off your taxes.
Other Parking Expenses
While you cannot deduct regular parking expenses at work from your taxes, you can deduct parking expenses for other reasons. If you must pay to park at a medical office, you can deduct these fees as a medical expense if you have enough medical expenses to deduct from your taxes. You can also deduct parking expenses related to charitable purposes, such as if you have to pay to park while doing volunteer service.