What expenses are eligible for pre-tax parking deductions?
The IRS limits qualified expenses to those incurred when you park at or near your work location. Only expenses paid in advance by means of payroll deduction are eligible for pre-tax treatment under the new program. Expenses incurred before the period covered by a payroll deduction are not eligible for payment under the program. For example, an employee may not pay for the cost of a parking pass for September with payroll deductions made in the following October.
