Identification

• Parking tickets are not tax deductible, even as a business expense, according to the Internal Revenue Service Publication 529. The IRS does not allow parking tickets to count as a tax deduction, because the government does not want to reward citizens for breaking the law. Also, parking tickets are not necessary to earn income, like a computer or home office would be for a small business.
  
  

Exception

• As of 2011, the IRS only allows armed reservists traveling at least 100 miles from home to deduct parking tickets, but only when the travel is related to duties as a reserve member of the Armed Forces. In this case, parking tickets reduce a taxpayer's taxable income rather than count as a miscellaneous deduction; a miscellaneous deduction requires deductible expenses equal at least 2 percent of adjusted gross income.
  
  

Tips

• You can deduct expenses related to business travel, such as toll booth costs and paying to park in a parking lot. Also, you may deduct legal costs, such as hiring an attorney, to defend yourself in a parking ticket case or any other traffic court violation, such as a speeding ticket.
  
  

Warning

• Do not try to disguise payment for parking tickets as a parking expense. Deducting a payment to any government organization raises a red flag should the IRS audit your return. As an employer, you can deduct parking tickets paid on behalf of an employee, but payment for any traffic violation counts as taxable income for the employee if you take this deduction.