Can I Write Off Clothing for Work?
Get definitive answers on deducting work clothing for taxes. Understand the strict federal criteria, who qualifies, and how to properly document expenses.
Many individuals wonder if they can deduct the cost of work-related clothing on their tax returns. Understanding the specific criteria for these deductions is important for tax compliance.
Current Federal Tax Rules
The ability to deduct work clothing expenses on federal income taxes has changed significantly. The Tax Cuts and Jobs Act (TCJA) of 2017 suspended most miscellaneous itemized deductions subject to the 2% of adjusted gross income (AGI) limitation. This suspension applies for tax years 2018 through 2025, making unreimbursed employee business expenses, including work clothing, generally not deductible at the federal level for most employees.
This change primarily impacts W-2 employees. Before the TCJA, employees could deduct job-related expenses exceeding 2% of their AGI if they itemized. This option is now generally unavailable for federal tax purposes.
Self-employed individuals operate under different rules. Those who file Schedule C, Profit or Loss from Business, can still deduct ordinary and necessary business expenses. This can include qualifying work clothing if it meets specific Internal Revenue Service (IRS) criteria.
While federal rules limit these deductions for many, some state tax laws may differ. Taxpayers should consult their state’s tax regulations for specific guidance on potential state-level deductibility.
Qualifying Clothing and Expenses
Even though federal deductibility for employees is limited, understanding what types of clothing qualify as a business expense is important for self-employed individuals. The IRS has two main criteria for clothing to be considered deductible. First, the clothing must be specifically required as a condition of employment.
Second, the clothing must not be suitable for general or everyday wear. This means the attire should be distinctive and not something an individual would typically wear outside of work. If the clothing can be adapted to general use, it usually does not qualify for a deduction, even if it is worn only for work.
Examples of clothing that typically meet these criteria and could be deductible include specific uniforms with company logos, safety gear such as hard hats, safety glasses, or steel-toe boots, and costumes for performers. These items are generally not suitable for regular daily activities. Conversely, common business attire like suits, dresses, or general office wear typically does not qualify because these items are adaptable for everyday use.
Beyond the initial purchase, other related expenses can also be deductible if the clothing itself qualifies. These include the costs of cleaning, laundering, dry cleaning, repairs, and alterations necessary to maintain the work attire. These maintenance costs are considered part of the overall expense of the qualifying work clothing.
Documentation and Reimbursement
For those eligible to deduct work clothing expenses, such as self-employed individuals, meticulous recordkeeping is essential. The IRS requires taxpayers to maintain adequate records to substantiate any claimed deductions. This includes keeping detailed receipts, invoices, and logs for all purchases and maintenance related to qualifying work clothing.
Expenses must be “ordinary and necessary” for the business, meaning they are common and helpful in the taxpayer’s trade or business. Records should clearly show the purpose of each purchase to support the deduction in case of an audit. The IRS generally recommends keeping business records for at least three years from the date the tax return was filed.
Employer reimbursement also impacts the deductibility of work clothing expenses. If an employer reimburses an employee for such costs under an accountable plan, the employee generally cannot deduct those expenses. An accountable plan requires expenses to have a business connection, be substantiated within a reasonable time, and any excess reimbursements returned.
For self-employed individuals, qualifying work clothing expenses would typically be reported on Schedule C, Profit or Loss from Business, as part of their business expenses. This form allows them to list various costs incurred in operating their business, including those for necessary and qualifying work attire.