Can You Deduct Work Clothes on Your Taxes?
Learn the specific IRS criteria that separate a deductible uniform from a non-deductible dress code and how your employment type affects eligibility.
Deducting the cost of work clothes can reduce your taxable income, but it is a commonly misunderstood area of tax law. The Internal Revenue Service (IRS) permits this deduction only when a specific set of circumstances are met. Before claiming this expense, it is important to understand the requirements, as failure to adhere to them can result in the disallowance of the deduction and potential penalties.
Eligibility Requirements for the Deduction
The IRS uses a three-part test to determine if work clothes are deductible, and all three conditions must be satisfied. First, the clothing must be required by your employer as a condition of employment. Your job must explicitly mandate that you wear specific items to perform your duties; it is not sufficient that you simply choose to wear certain clothes for work.
The second condition is that the clothing must not be suitable for everyday wear. This is an objective test based on whether the items can take the place of your regular street clothes, regardless of your personal taste. For example, a business suit required for a sales position is not deductible because it can be worn to other events. In contrast, a uniform with a permanently affixed company logo is not considered suitable for personal use.
The final condition is that you must actually use the clothing for work. Items that qualify under all three conditions often include specialized work attire like the uniforms of delivery workers, firefighters, and healthcare professionals. Protective gear such as hard hats, safety glasses, and steel-toed boots also qualify. However, a general dress code requiring items like a white shirt and black pants does not make them deductible because they are suitable for everyday wear.
Who Can Claim the Deduction
The ability to deduct the cost of work clothes depends on your employment classification. Traditional W-2 employees cannot claim this deduction for unreimbursed business expenses on their federal tax returns, even if their work clothes meet all eligibility requirements.
The deduction is available for individuals who are self-employed, including independent contractors, freelancers, and sole proprietors. For these individuals, the cost of qualifying work clothes is considered an ordinary and necessary business expense. This includes a freelance entertainer purchasing a costume for a performance or a self-employed carpenter buying required safety gear.
Statutory employees are another category of workers who can claim this deduction. These individuals are treated as employees for some tax purposes but as self-employed for income tax purposes, allowing them to deduct business expenses. Common examples include certain drivers, full-time life insurance sales agents, and some traveling salespeople.
Calculating and Claiming the Deduction
If you are eligible, you can deduct the purchase price of qualifying items and the cost of any necessary alterations. The ongoing costs of maintaining these work clothes are also deductible, which includes expenses for dry cleaning or professional laundry services. If you launder the items at home, you can only deduct the costs directly related to washing those specific items.
For self-employed individuals, these combined costs are reported on Schedule C (Form 1040), Profit or Loss from Business. The total amount is entered on the line for “Other Expenses” with a description like “Work Uniforms” or “Protective Clothing.” This expense reduces your self-employment income, which lowers both your income and self-employment tax liability.
Required Recordkeeping
You must maintain detailed records to support your deduction in case of an IRS audit, as the deduction can be disallowed without proper documentation. Your records should provide a clear account of all related expenditures throughout the tax year. For the purchase of qualifying clothing and any alterations, you must keep all receipts showing the date, vendor, item description, and amount paid.
Documenting cleaning costs also requires careful recordkeeping. If you use a professional dry cleaner or a laundromat, you must keep every receipt from these services. For costs associated with laundering items at home, you need to maintain a detailed log. This log should record the date of each washing and a reasonable calculation of the cost for items like detergent, water, and electricity.