Can I Claim Work Clothes on My Taxes?

Deducting work-related expenses on your taxes, including the cost of work clothes, has undergone significant changes in recent years. Understanding these changes is important for determining what can and cannot be claimed when filing your annual income tax return. While the landscape of deductions has evolved, specific criteria still exist for what qualifies as a legitimate work clothing expense.

Understanding Federal Tax Changes

For most employees, the federal tax landscape concerning unreimbursed employee business expenses, such as work clothes, has significantly shifted. The Tax Cuts and Jobs Act (TCJA) of 2017 suspended the deduction for these expenses. This suspension is in effect for tax years 2018 through 2025, meaning that for federal income tax purposes, many employees generally cannot deduct the cost of their work clothes if their employer does not reimburse them.

Before the TCJA, employees who itemized deductions could claim miscellaneous itemized deductions that exceeded 2% of their adjusted gross income (AGI). This category included unreimbursed employee business expenses. The TCJA eliminated these miscellaneous itemized deductions entirely for the specified period, effectively removing the line on Form 1040, Schedule A, where these expenses were once reported.

Even if work clothes meet certain qualification criteria, the federal deduction is currently unavailable to the majority of W-2 employees. The current suspension of these deductions is set to expire after 2025 unless Congress extends it.

Criteria for Deductible Work Clothes

Even with the federal deduction largely suspended for most employees, the Internal Revenue Service (IRS) maintains specific criteria for what would qualify as a deductible work clothing expense. The clothing must satisfy three main conditions to be considered deductible:

First, the clothing must be required as a condition of employment. This means your employer mandates wearing specific attire for your job duties.
Second, the clothing must not be suitable for general or everyday wear. This criterion ensures that the clothing is distinctive and not something typically worn outside of a work setting, preventing deductions for regular clothing that could serve a dual purpose.
Third, the expense must not have been reimbursed by your employer. If your employer provides a clothing allowance or repays you for the cost, you cannot claim a deduction for those expenses.

Examples of clothing that typically meet these criteria include uniforms with company logos, such as those worn by police officers, firefighters, or nurses, or specialized protective clothing like steel-toed boots, safety glasses, or hard hats used in construction. Costumes worn by performers, if not suitable for everyday use, may also qualify.

Conversely, regular business suits, everyday attire, or casual clothing like polos or slacks, even if required by an employer, generally do not qualify because they are suitable for personal use. The cost of laundering or maintaining qualifying work attire can also be included if the clothing itself is deductible. Meeting these specific criteria is a prerequisite, but it does not guarantee a federal deduction for most employees due to the current tax law.

State Tax Rules and Specific Exceptions

While federal deductions for unreimbursed employee expenses are largely suspended, the rules can differ at the state level. Some states have tax laws that “decouple” from the federal changes, meaning they may still allow deductions for these expenses, including work clothes. It is important for individuals to consult their specific state’s tax regulations to determine if such deductions are permissible. For instance, certain states may allow deductions for union dues, work uniforms, and other professional expenses on their state income tax returns.

A limited number of individuals can still deduct unreimbursed employee business expenses on their federal tax returns. Categories of individuals who may still qualify include:

Armed Forces reservists
Qualified performing artists
Fee-basis state or local government officials
Employees with impairment-related work expenses, which cover costs for disabled employees necessary for them to work.

These exceptions allow certain taxpayers to use Form 2106, Employee Business Expenses, to calculate their deductible expenses, which are then reported on their federal tax return.

Essential Record Keeping

Maintaining thorough records for work-related clothing expenses remains important, regardless of the current federal deductibility for most employees. Proper documentation is crucial for several reasons, including potential future changes in tax law, eligibility for state tax deductions, or if one falls under a federal exception. The IRS emphasizes that taxpayers must substantiate any claimed deductions with adequate records.

You should keep receipts for all purchases of work clothing, clearly detailing the date, vendor, amount, and a specific description of the item. It is also important to retain any documentation from your employer that proves the requirement for specific clothing, such as a company policy or a letter.

Records of any employer reimbursement received for the clothing should also be kept, as only unreimbursed amounts can potentially be considered for a deduction. While the IRS does not mandate a specific record-keeping system, it requires that records be clear and accurate, demonstrating income and expenses. Tax records, including supporting documents, should be retained for at least three years after filing a tax return.