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So: The IRS defines Qualified Parking as parking at or near your place of employment. It also includes parking on or near the location from which an employee commutes to work using public transit, vanpool or carpool (such as park-and-ride locations).

How close does that place need to be? For example I'm considering using a car to get to work. What if parking near work is cheap but parking near where I live is expensive? Can I use my FSA for that?

I'm considering keeping my car when I move so that I can use it for commuting but it seems that I may be unable to use the parking FSA. Is there another solution?

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No, it doesn't look like you can use the employee benefit to pay for parking near your home.

The definition for "qualified parking" is in the Internal Revenue Code Section 132 ("Certain Fringe Benefits") (f) (5) (c):

(C) Qualified parking

The term “qualified parking” means parking provided to an employee on or near the business premises of the employer or on or near a location from which the employee commutes to work by transportation described in subparagraph (A), in a commuter highway vehicle, or by carpool. Such term shall not include any parking on or near property used by the employee for residential purposes.

Parking near your home is explicitly excluded.

Your employer's human resources department can probably provide information on the details of where you can park and get reimbursement.

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