Can You Deduct Haircuts on Your Taxes?
Unpack the IRS rules on personal vs. business expenses. Understand why most haircuts aren't tax-deductible and the rare exceptions where they might be.
Distinguishing between personal and business expenses for tax deductions can be challenging. Many individuals wonder if personal care costs, such as haircuts, are tax-deductible. While the general answer is no, specific circumstances allow such an expense to qualify as a business deduction. Understanding these distinctions is important for accurate tax reporting.
The General Rule
Tax law states that personal expenses are not deductible. The Internal Revenue Service (IRS) distinguishes between expenditures for personal upkeep and those incurred directly for a trade or business. An expense is considered personal if it benefits an individual in their daily life, regardless of their profession.
Routine haircut costs are personal expenses for most taxpayers. These grooming services are necessary for general appearance and are not directly tied to earning income for the majority of occupations. Even if a well-groomed appearance is beneficial professionally, the IRS views the cost as a personal responsibility.
When Haircuts Can Be Deducted
For a haircut to be tax-deductible, it must meet the IRS criteria of being “ordinary and necessary” for a trade or business. An “ordinary” expense is common and accepted in a specific industry, while a “necessary” expense is helpful and appropriate for that business. This means the expense must be directly related to and required by the profession, not merely contributing to a general professional image.
This strict interpretation limits deductibility to niche scenarios, primarily within the entertainment industry. For example, professional actors, models, or performers might deduct haircut costs if a specific hairstyle is a direct and contractual requirement for a role, distinct from their everyday appearance. The grooming must be unsuitable for ordinary life and solely for business purposes, such as unique styling for a photoshoot or a character. The burden of proof for such a deduction is substantial, requiring taxpayers to demonstrate a clear business purpose and that the expense provides no personal benefit outside of work.
How to Claim the Deduction
If a haircut meets the criteria for a business expense, such as for a self-employed actor or model, it is claimed on Schedule C (Form 1040), Profit or Loss From Business. This form is used by sole proprietors and single-member LLCs to report business income and expenses. The expense is listed under “other expenses” if it doesn’t fit a specific line item.
For employees, unreimbursed job expenses, including any work-related grooming costs, are not deductible. This is due to the Tax Cuts and Jobs Act of 2017 (TCJA), which suspended miscellaneous itemized deductions subject to the 2% adjusted gross income (AGI) floor for tax years 2018 through 2025. Regardless of employment status, meticulous record-keeping, including receipts and documentation proving the business necessity of the haircut, is essential to support any claimed deduction.