How to Save on Taxes via Parking and Commuting Costs

For some people, commuting to work is one of the largest expenses in their budget. If you spend much of your time commuting to and from work and much of your money on gas and parking, here are some tips on using these expenses to save on taxes.

Ask for Pre-Tax Commuting Benefits

If you live in a metropolitan area that has transit, many transit authorities will set up pre-tax purchase plans with workplaces. For example, your employer can offer monthly commuter passes for the trains and buses in your area and allow employees to take off the commuting costs from their pre-tax income. This provides you with a green commute and saves pre-tax money, as well.

Go Directly from One Job to Another

If you have more than one job or more than one work site, you can go from one site to the next and deduct these expenses on your taxes. Since this is direct work-to-work commuting, this is a work cost that is deductible from taxes. Make sure that you keep track of work-to-work commute expenses and mileage during the year.

Self-Employed Can Write Off All Commuting

If you are self-employed, you can write off the commute that you use in order to see clients or conduct business activities, including parking. If you do freelance work or if you own your own business, keep track of the mileage that you use during the year, the tolls that you pay, and any other commuting expenses. This can be used to your benefit during tax time.

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