Self-Employed Individuals and Small Business Owners
If you’re self-employed, a freelancer or a small business owner, you already know you’re able to deduct most expenses you accumulate to earn business income.
In particular, you can claim business travel expenses and business vehicle expenses. So, if you travel to a business conference and have to pay for parking, it’s deductible as a travel expense. Similarly, if you drive to a client’s office and pay for parking, that’s also deductible.
Unfortunately, as a salaried employee, if you pay to park at your office you cannot deduct it as an employment expense. However, if you work in different places every day or are normally required to work away from your employer’s office, you may be able to deduct your parking fees.
To claim these costs as an employment expense:
- You must not receive a non-taxable vehicle allowance
- Your employer must require you to cover your vehicle expenses as a condition of your employment
- You’ll need your employer to complete and sign Form T2200 Declaration of Conditions of Employment.
You’ll need this form to certify the expenses were required for your employment and without it, your claim will be denied. Be sure to keep all your receipts; your employer will need them to prepare the T2200 form accurately.
If you pay parking fees in order to earn commission, you can deduct your expenses as long as they weren’t for parking at your employer’s office.
For example, if you work as a commission-earning telemarketer and you pay to park outside your office, you cannot deduct those expenses. But, if you’re out pitching a product to a prospective client away from your office, those parking expenses are deductible.
Parking Fees as Medical Expenses
If you drive to your local doctor and have pay for parking, you cannot deduct your parking expenses as a medical expense.
But, if you must travel to access medical care, you may write off the cost of parking as a medical travel expense. In order to qualify, you must need to travel at least 40 kilometers for the medical care. In addition to parking fees, you may also deduct the cost of your accommodation, meals and vehicle expenses.
Check out our article on claiming medical travel credits to learn more.