When Are Laundry Expenses Tax Deductible?
Learn the specific circumstances under which laundry costs are tax deductible. Eligibility depends on the nature of your work clothes and your employment status.
The cost of keeping work clothes clean can reduce your tax bill, but the rules are precise and depend on your employment status and the type of clothing. The ability to claim this deduction hinges on meeting specific criteria established by the Internal Revenue Service. Understanding these requirements is the first step in determining if your laundry costs qualify.
Defining Qualifying Work Clothes
For clothing upkeep to be deductible, the clothing must meet a two-part IRS test: it must be required as a condition of your employment, and it must not be suitable for everyday wear. Both conditions must be met. A standard business suit, for example, would not qualify because it can be worn for personal occasions, even if an employer requires it daily.
The distinction lies in the clothing’s general adaptability. Items that pass this test are those not part of a normal wardrobe. This includes company-specific uniforms with a permanently attached logo, protective gear such as safety glasses and steel-toed boots, or occupation-specific garments like a nurse’s scrubs or a chef’s uniform.
Conversely, items that people consider work clothes may not qualify. For example, a landscaper cannot deduct the cost of durable jeans and flannel shirts because they are suitable for personal use. This is true even if they are purchased specifically for work and worn exclusively on the job.
Deducting Costs as a Self-Employed Individual
Self-employed individuals, such as independent contractors and sole proprietors who file a Schedule C, have a direct path for deducting these expenses. The costs associated with cleaning qualifying work clothes are considered an ordinary and necessary business expense. An ordinary expense is one that is common in your trade, while a necessary expense is one that is helpful and appropriate.
These taxpayers report the total cost of laundry and dry cleaning for their qualifying uniforms or protective gear on their Schedule C, “Profit or Loss from Business.” The expense is listed under “Other expenses” and is not subject to any percentage of income limitations, allowing for a full deduction of the actual costs incurred.
This deduction is included with other business expenses for the year. It directly reduces net self-employment income, which in turn lowers both income tax and self-employment tax liability.
Calculating and Documenting Your Expenses
To claim a deduction for laundry, you must use your actual costs, as the IRS does not provide a standard allowance or per-load rate. Qualifying costs include money spent on detergent, fabric softener, and fees for using laundromat machines. Professional dry-cleaning expenses for qualifying work clothes are also fully deductible.
A challenge arises when washing work clothes with personal garments at home. In this scenario, you cannot deduct the entire cost of the load. You must allocate the expense by creating a reasonable basis for the work-related portion, such as determining the percentage of the load’s weight that is work clothes and applying that to the cost.
You must have proof for the deduction. This means keeping all receipts for dry cleaning and laundry supplies. For home laundry, a detailed log is necessary, showing the date of each load, the allocation method used, and the cost per load. Estimates are not permissible, and failure to provide adequate records can lead to the disallowance of the deduction.
The Rule for W-2 Employees
For employees who receive a W-2 form, the rules changed with the Tax Cuts and Jobs Act of 2017. This legislation suspended the deduction for unreimbursed employee expenses, a category that included laundry for work uniforms.
This suspension is in effect for tax years 2018 through 2025. Consequently, a W-2 employee, such as a restaurant server or a hospital nurse, cannot deduct the cost of cleaning their required uniform on their federal tax return during this period. This change eliminated this tax benefit for most employees.
The Business Travel Exception
An exception to the general rules applies to business travel. Both W-2 employees and self-employed individuals can deduct laundry and dry-cleaning costs as a travel expense. These costs are deductible if you are away from home on business overnight. This deduction applies to the cleaning costs for any of your clothes while traveling for work, not just qualifying uniforms.