Can I Deduct Clothes as a Business Expense?

The Internal Revenue Service (IRS) applies specific rules to deducting clothing as a business expense. This article clarifies the circumstances under which clothing expenses may be considered deductible, providing guidance for taxpayers.

Qualifying Criteria for Business Clothing

For clothing to qualify as a deductible business expense, it must satisfy two IRS criteria. First, the expense must be “ordinary and necessary” for your trade or business. An “ordinary” expense is one that is common and accepted within your industry or business. A “necessary” expense is considered helpful and appropriate for your business activity. These definitions ensure that the expense has a direct link to earning business income.

The second criterion is that the clothing must not be suitable for general or personal wear outside of work. This means that even if you wear certain attire exclusively for work, if it could reasonably be worn as part of your everyday wardrobe, it does not qualify for a deduction. For instance, standard business suits, dresses, or other professional attire that can be adapted for personal use are generally not deductible. Both the “ordinary and necessary” and “not suitable for general wear” tests must be met for the clothing to be deductible.

Examples of Deductible Work Attire

Specific types of clothing meet deductibility requirements because they are uniquely tied to a profession and lack general utility. Uniforms are a prime example, particularly those with company logos that clearly identify an individual’s profession or are specific to a service industry. These items are not typically worn outside of the work environment, making their business purpose evident. The cost of purchasing and maintaining such uniforms, including cleaning, can be deducted.

Protective clothing and safety gear also qualify for deduction. This category includes items such as hard hats, safety glasses, steel-toed boots, and lab coats, which are required for safety in various occupations like construction or manufacturing. These items are designed for specific occupational hazards and are not suitable for everyday use. Similarly, costumes worn by entertainers or performers, provided they are distinctive and solely for professional use, can be deductible expenses.

Documentation and Record Keeping

Maintaining thorough and accurate records is essential to substantiate any business expense deduction, including those for clothing. Taxpayers should keep detailed records of all purchases, including receipts that itemize the specific clothing items bought. These records should clearly show the date of purchase, the amount paid, and a clear description of the clothing.

It is also important to document the specific business purpose for which the clothing was purchased and used. This helps link the expense directly to the “ordinary and necessary” criterion. Records should be kept contemporaneously, meaning at or near the time the expense is incurred, to ensure accuracy and provide strong evidence. Without adequate documentation, deductions may be disallowed upon review or audit by the IRS. Tax records, including those for business expenses, should be retained for at least three years from the date the tax return was filed, though keeping them for six years is advisable.

Claiming the Deduction

The method for claiming the clothing deduction depends on your employment status. Self-employed individuals, including sole proprietors and those with single-member Limited Liability Companies (LLCs), report these expenses on Schedule C, “Profit or Loss from Business,” which is filed with their Form 1040. On Schedule C, these expenses are categorized alongside other business costs, reducing the business’s net profit.

For employees who receive a W-2, the ability to deduct unreimbursed business expenses, including clothing, has been limited. Under current tax law through 2025, employees cannot deduct these expenses as itemized deductions on Schedule A. Unless an employer provides reimbursement under an accountable plan, employees cannot claim a tax deduction for work-related clothing. After filing, it is crucial to retain all supporting documentation for the recommended retention period in case of a tax inquiry.