Parking Fees for Medical Care or Treatment: FSA Eligibility

Parking fees for medical care or treatment are eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), or a health reimbursement arrangement (HRA). Parking fees for medical care or treatment are not eligible with a dependent care flexible spending account (DCFSA), or a limited care flexible spending account (LCFSA).

What are parking fees for medical care or treatment?

Parking fees for medical care or treatment are the expenses of leaving transportation in a parking lot or garage while entering a hospital, doctor's office, or medical treatment facility. Parking fees are always eligible for reimbursement with a consumer-directed healthcare account so long as the purpose for parking a vehicle was to obtain medical care or treatment as a hospital or similar facility.

Parking fees and tolls can be added to medical expenses for reimbursement claims under the standard mileage rate or itemized individually.

Other reimbursable travel expenses include rental car expenses, bus tickets, taxi fare, train tickets, and plane & ferry fees. Ambulatory services, parking and toll fees are also included. These expenses extend not just to the person receiving medical care but also to other individuals. Parents who are required to travel with a child, nurse/caregivers required for treatment, and any other individuals if visits are required for treatment of a mentally ill dependent, can also have their expenses covered if they are necessary for safe travel.

Here is an example of reimbursement for parking fees from the IRS guidelines on consumer-directed healthcare accounts:

https://www.irs.gov/publications/p502/ar02.html

In 2015, Bill Jones drove 2,800 miles for medical reasons. He spent $500 for gas, $30 for oil, and $100 for tolls and parking. He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction.

He figures the actual expenses first. He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630.

He then figures the standard mileage amount. He multiplies 2,800 miles by 23 cents a mile for a total of $644. He then adds the $100 tolls and parking for a total of $744.

Bill includes the $744 of car expenses with his other medical expenses for the year because the $744 is more than the $630 he figured using actual expenses.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

 


AZ-PROD-WEB01 11/18/2017 2:04:49 PM