A traffic ticket is not a deductible business expense.
Why it is not deductible
A fine or similar penalty paid to a government for breaking the law is not deductible, and the business context of the trip does not change that. It covers speeding, parking, toll violations, overweight vehicle citations and late filing penalties alike. Delivery drivers and trades collect these constantly and they still never reach the return. What is deductible is the lawful charge you should have paid instead: metered parking, a garage fee and the toll itself are all ordinary car expenses.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for a traffic ticket is already written down.
Start for freeWhat a traffic ticket is confused with
- Line 9, car and truck expenses
- Lawful parking and tolls on a business trip are deductible car expenses on line 9, so the $4 meter is deductible and the $65 ticket for not feeding it is not.
- Line 23, taxes and licenses
- Line 23 holds taxes and licence fees, so a late filing penalty on a state return does not become a licence cost, and a penalty is not a tax.
- Line 27a, other expenses
- Court costs and legal fees to contest a citation can be ordinary business expenses even though the fine itself is not, so do not fold the two together in Part V.
Examples people try to deduct here
- $65 parking ticket on a delivery route: not deductible
- $180 speeding fine on the way to a job: not deductible
- $4 metered parking at the same job: deductible on line 9
- $95 toll violation notice: not deductible, while the $6 toll is
- $250 state late filing penalty: not deductible
What does not belong here
- Entering fines on line 9 with the parking and tolls.
- Entering them on line 23 as taxes.
- Entering them in Part V as a cost of doing business.
- Deducting a settlement that is itself a civil penalty paid to a government.
The limit that applies
Fines and penalties paid to a government for violating a law are not deductible, which covers parking, moving and toll violations as well as late filing and late payment penalties.
What to keep
If you contest a citation and pay legal costs, keep those invoices separate from the fine itself so the deductible part is visible and the fine is clearly excluded.
Other things that are not deductible
| Expense | Line |
|---|---|
| a business suit | Not deductible |
| a government fine or penalty | Not deductible |
| a parking ticket | Not deductible |
| a personal expense on the business card | Not deductible |
| a spouse's airfare on your business trip | Not deductible |
| an unpaid invoice | Not deductible |
| commuting mileage | Not deductible |
| country club dues | Not deductible |
| estimated tax payments | Not deductible |
| federal income tax | Not deductible |
| groceries for your home | Not deductible |
| interest on underpaid federal income tax | Not deductible |
Related lookups
- Where does business mileage go on Schedule C?
- Where does a business license go on Schedule C?
- Where do client gifts go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for a traffic ticket is already written down.
Start for free