Deduct Clothing: How To Legally Claim For Taxes
Today we will look at how to deduct clothing expenses on your tax return. The cost and maintenance of your work clothes can be a valid tax write off. The IRS lets you deduct the cost of your work clothes, shoes and protective gear, plus the cost of maintenance such as laundry, dry cleaning, repairs and replacements.
Deduct Clothing For Taxes
This could be a huge deduction for many businesses. For your clothing, shoes and gear to legally be qualified for this tax deduction they must follow the 3 part test.
1. You wear clothing with a business logo, uniform or specialty clothing like scrubs.
2. You have frequent laundry or dry cleaning expenses.
3. You must use protective gear or equipment in your line of work.
To take advantage of these benefits you will need to do a little planning on your behalf. For instance, you could get your logo printed on your favorite shirts/coats/hats etc. Then anytime they needed to be laundered or replaced, you will receive those deductions.
More Information From Intuit TurboTax
If you have to buy a smart new suit for your paralegal job or uniforms for your National Guard duties, it might seem these are obvious work expenses and valid tax deductions. Not necessarily, according to the Internal Revenue Service (IRS). Work clothes that can double as street or evening clothes are no more deductible than anything else in your closet. To claim a deduction for buying clothes, the clothes have to be mandatory for your job and unsuitable for everyday wear.
Step 1: Which work clothes are necessary and usable only for work?
Determine which work clothes are necessary for your job but not suitable to wear outside of work. However, just buying clothes specifically for work and never wearing them at any other time isn’t good enough. The IRS has accepted deductions for theatrical costumes, hard hats and other safety gear. Among the items that do not qualify are overalls, white dress shirts, and bibs even if required on the job site. For example, even though your company requires you to wear a suit each day, you cannot deduct their cost since you can wear the suits to weddings, job interviews and other occasions that don’t relate to work.
Step 2: Document your employer’s policies
Keep a copy of your employer’s policy. For example, a pilot was able to present written proof that his employer required him to wear shoes not suitable for everyday use and to incur costs of having them polished regularly when the IRS questioned his deduction. The pilot was ultimately able to deduct the cost of the shoes as well as the expense of keeping them polished.
Step 3: Save your receipts
If the IRS asks any questions, receipts provide proof that you spent the money on the clothes you are claiming a deduction for. Receipts for the amounts you spend maintaining your work clothes, such as for dry cleaning, shoe-shining and tailoring services are equally important since these costs are deductible too.
Step 4: Claiming the deduction
Include your clothing costs with your other “miscellaneous itemized deductions” on the Schedule A attachment to your tax return. Work clothes are among the miscellaneous deductions that are only deductible to the extent the total exceeds 2 percent of your adjusted gross income. Add all the deductions in this category together — other deductions include work-related travel, work tools and professional journals — and subtract two percent of your adjusted gross income. This is the amount you can deduct.
Military uniforms can be used off duty, so are not a guaranteed deduction unless the rules prevent you from wearing them outside of work. If you receive a clothing allowance or other type of reimbursement, then you must reduce your deductible expense by the amount of allowance you receive.
You can find your adjusted gross income on the last line of the first page of your Form 1040.