A parking ticket is not a deductible business expense.
Why it is not deductible
A fine or penalty paid to a government for breaking the law is not deductible, however business-related the trip was. Delivery drivers and trades collect these constantly and they still never go on the return. The lawful parking charge that would have avoided the ticket is deductible on line 9, which is why the two have to be coded separately.
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 parking ticket is already written down.
Start for freeWhat a parking ticket is confused with
- Line 9, car and truck expenses
- The meter or garage fee is a deductible business parking cost on line 9; the ticket for overstaying it is a fine and has no line.
- Line 23, taxes and licenses
- Line 23 is for taxes and licenses, not penalties, so a fine does not belong there either.
Examples people try to deduct here
- A $65 ticket collected while double-parked on a delivery
- A $250 speeding fine on the way to a job
- A $90 toll violation penalty
- A late registration penalty on a work van
What does not belong here
- Claiming the ticket as a cost of doing business
- Putting fines into taxes and licenses on line 23
- Claiming a court fine for a moving violation
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 alike.
What to keep
There is no record to keep for a deduction, because there is no deduction. Still file the ticket with the vehicle records so the charge is not later miscoded as a parking fee.
Other things that are not deductible
| Expense | Line |
|---|---|
| a business suit | Not deductible |
| a government fine or penalty | Not deductible |
| a personal expense on the business card | Not deductible |
| a spouse's airfare on your business trip | Not deductible |
| a traffic ticket | 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
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 parking ticket is already written down.
Start for free