Is Your Wardrobe Tax Deductible?
If you work in a field where you need to wear a uniform, you may think the cost of those clothes are tax deductible. However, there are some restrictions on the amount of clothing you can deduct as an expense.
In order to qualify for a deduction, the clothing must be mandatory and unsuitable for everyday wear. This is known as the distinctiveness test and is often the reason that certain items like uniforms are not tax deductible.
Uniforms
Generally speaking, you cannot deduct the cost of any clothing that is suitable for everyday wear. This includes things like prom dresses, wedding gowns, Halloween costumes, and other clothes that aren’t required by your job.
The high end wardrobe does, however, make exceptions to the rule when it comes to certain kinds of work clothing. These include uniforms, costumes and safety gear.
Military uniforms, for example, aren’t deductible as long as you’re on active duty in the armed forces. You can, however, deduct the unreimbursed cost of military uniforms if you’re on a reserve or national guard duty. You must reduce your deduction by any nontaxable allowance you receive for these uniforms and by any local military rules that prohibit wearing fatigue uniforms off duty.
School uniforms are also not deductible as long as they are worn in a classroom setting. This rule applies to public, parochial and private schools as well.
A lot of the bad information out there about military uniforms and tax deductions revolves around this issue, so it’s important to check with a professional tax professional or financial advisor before making a decision about whether or not you should write off your uniform expenses.
If you are an employee, your employer may deduct the costs of uniforms if they are considered “reasonable and necessary” as part of your job duties. These could be things like safety boots, hard hats, and gloves, or theatrical costumes that are required for your work.
You can also deduct the cost of uniforms if your employer requires you to wear them at all times when at work, such as in a construction site. If you’re an independent contract nurse and you have to wear scrubs, this could be a good way for you to add some money to your paycheck without having to pay taxes.
You can also deduct the cost of other maintenance for your work clothes, including dry cleaning and shoe-shining. This is especially beneficial if you need to buy new uniforms and have them cleaned regularly to keep them looking fresh.
Specialized Clothing
Specialized clothing is an ideal choice for cyclists, as it offers a great balance of performance and durability. It’s also available in a wide range of colors and styles. You can find both road and mountain bike jerseys, shorts, bibs and other cycling apparel from Specialized.
While most people don’t consider specialized clothing to be tax deductible, there are several exceptions to the rule. For instance, if you’re purchasing work-specific attire for your job, you can deduct the costs on Schedule A.
However, this deduction doesn’t apply to clothes that you can wear outside of your job. So, if you want to deduct a pair of expensive shoes from your wardrobe, it’s important to keep proof that the shoes are only intended for use in work.
In addition, if your employer requires you to wear certain types of clothing at work, the cost of these items may be deductible as well. This can be a good way to save money on taxes.
A few examples of specialized clothing that may be deductible include uniforms, safety protection gear and theatrical costumes. The IRS defines a uniform as a uniform that’s worn exclusively by the employee for work.
These types of clothing can include hard hats, safety goggles, reflective vests and other protective gear. If you’re a contractor, you can claim the cost of your hard hats and safety gear on your business expenses.
Another type of specialized clothing that you can claim as a tax deduction is wigs, makeup and haircare products. The IRS says these products are deductible when they’re only used for professional purposes.
You can also claim a tax deduction for the costs of costume or prop rental. This applies to things like costuming for a film or stage play, and it’s usually easier to get an exemption if you’re a qualified performing artist.
There are a few different lines of specialized clothing from Specialized, including the SL and RBX lines. The SL line features more high-performance options and is based around a lycra material that provides both comfort and performance. The RBX line, on the other hand, has a more casual look and feel with a cotton-like fabric that’s ideal for summer riding.
Personal Apparel
For most clothing purchases, you have to meet two specific criteria in order for them to qualify as a tax deduction: First, you must be wearing the item exclusively for work purposes; and second, you must be able to prove that you can’t wear it outside of your work. These rules were written with uniforms in mind, but they apply to a wide variety of other items that are necessary and practical for your job.
The same goes for protective clothing, like hard hats, work gloves, safety glasses and boots. In addition to being necessary for your work, these items must also be in line with industry standards and are required to complete your job duties properly.
However, there are some exceptions to this rule. For example, if you are an entertainer or a musician, you may be able to deduct the cost of costumes and accessories.
In a 1986 case, Cecil Mella, a tennis pro at two clubs, was able to claim the cost of his tennis attire as a business expense. In this case, Mella was able to show that he only wore his tennis clothing at work because it was required by the club.
If you are not sure if your wardrobe will qualify as a tax deduction, consider renting your clothes instead of buying them. This can be a great way to save money while meeting the IRS requirements for wardrobe write-offs.
Another option for claiming your wardrobe expenses is to use Keeper, which helps you discover and track all of your tax deductions. Whether you’re a self-employed freelancer or an independent contractor, Keeper is a great tool for making sure you’re getting all the tax write-offs that you deserve!
Despite the fact that these expenses are not deductible, they may still be worth the investment for certain types of work. For example, if you’re an engineer working on a construction site, the expense of protecting your body from skin abrasions with overalls is deductible because it is necessary for your job.
Shoes
Although the cost of a decent business wardrobe isn’t tax deductible in the traditional sense, it can be deducted as an itemized business expense under section 162 of the Internal Revenue Code. As a matter of fact, you’ll want to consult with your CPA or tax professional to determine which items in your closet are eligible for the aforementioned deduction. Besides, it’s a good idea to keep a running tab of your clothing and accessory expenses, lest you wind up with an audit nightmare on your hands. A well-thought-out plan will pay off big in the form of a tax refund or two. The best way to do this is to identify the high-ticket items from the rest and allocate them according to a budget.
