Deducting Work Clothes
Most people are able to open their closet, take a look at their wardrobe and separate items between “work clothes” and “non-work clothes.” Maybe that means your stained and ripped T-shirts and jeans because you work outside in the dirt. Or maybe that means your nicer dresses or slacks, or your workout pants, depending on what you do for work.
But did you know that when you own your own business, there are specific items that can and cannot be deducted when it comes to those “work clothes”?
What does the IRS say?
As with all deductible business expenses, clothing costs can be deductible if they are ordinary (common with your type of work) and necessary, and only if all three of the following apply as well:
The clothing is of a type of specifically required as a condition for employment,
It is not adaptable to general use as ordinary clothing, and
It is not worn as ordinary clothing.
Now, some real life examples…
• You provide legal services to clients where it is ordinary and necessary for you to wear dress suits when meeting with clients or when representing them in court. While it is ordinary and necessary for your work, you are able to wear dress suits as ordinary clothing in other settings outside of work (whether you would choose to or not), therefore these are non-deductible.
• You are a construction contractor and you frequently wear jeans while you’re working. Since you have a team, you also have purchased shirts with your company logo or emblem on them for everyone to wear while on-site. Your jeans would fall under ordinary clothing, so they would be non-deductible.
However, since your shirts have a company logo or emblem on them and required for the team, they are considered deductible. Note the key here is the company logo or emblem is on the shirt. This is what makes it distinct in order to be deductible. If they were just plain shirts, they would be considered ordinary clothing and non-deductible.
• You are a personal trainer and it’s ordinary and necessary for you to wear athletic clothes while you are training with clients. Since athletic clothing is able to be worn outside of work as ordinary clothing, it would be non-deductible.
• You work in a specialty trade where it’s ordinary and necessary for you to wear hard hats, hazmat suits, safety boots or reflective vests. I think we can all agree that these are not ordinary clothing we see people wear outside of work! These items are protective in nature, and all fit the criteria to be deductible.
The short answer is:
If it’s protective clothing or branded with your company logo, then it’s easily deductible.
If it’s clothing that could double outside of work as well, then it’s not. It doesn’t matter whether you would wear it, just whether you could.
Did we miss any clothing examples that you still have questions on? Drop us a line! We’d love to take a look at your situation with you!
No assurance is given that the information is comprehensive in its coverage or that it’s suitable in dealing with each individual’s particular situation. Kayla Prusinski does not hold a Certified Public Accountant (CPA) or similar license. This blog article is to provide general information only and does not constitute tax or legal advice, and cannot be used or substituted for tax or legal advice. Savvy Bird Consulting, LLC is not responsible for the implementation or outcomes this material may have.