Can i deduct clothes for work

So if you want to remain fully compliant with the IRS than you need to exercise caution when you deduct clothes as a work expense, especially if the items could be worn outside the job.

The problem is that people that work for themselves, such as those that are self-employed, have no company standard or policy they need to follow. For example, Wal-Mart will require you to wear a uniform.

Yet when you work for yourself, you may need work clothes to perform a job as a plumber, yet there is no company policy in place that says the clothing is mandatory. Once again, if you follow the IRS manual word-by-word than it will tell you the work clothes and accessories must be related to the job and not suitable for everyday wear.

Therefore, a plumber can make the argument that the clothes are necessary to complete the job and would not be worn otherwise, even if the items are missing a company logo. Like a lot of tax deductions related to self-employment, some personal judgment and logic are necessary.

If you need the items to complete your job professionally and appropriately, then they qualify as tax deductions. However, if you are using the items as an excuse to catch a tax break than it will likely eventually catch up to you. Getting audited by the IRS is a noteworthy concern for the typical American. In fact, according to a recent study by NerdWallet, one in four Americans are worried about a tax audit. Ironically, the risk of getting audited is far lower than you might expect.

During the last several years the IRS has reviewed approximately one percent of all returns, and a considerable part of that has to do with limited IRS resources. Therefore, the IRS will not target you merely because they question the amount you deducted for work-related clothes.

Nor will it scrutinize every other dollar you claimed as business-related expenses and tax deductions for self-employed individuals. Of course, the target on your back gets larger the more income you earn and report each year, but the IRS is so overworked that they do their best to trust self-employed earners are telling the truth about their deductions.

People that work for another employer file a work-related clothing deduction differently than those that work self-employed. The good news is unlike W-2 earners you do not need to itemize every single item and are also not subject to the two percent limitation of those that are seeking a work-related reimbursement from the IRS.

To protect yourself in the event of an audit, it is critical that you save every receipt related to a purchase for any business expense, work clothes included. If the IRS asks any questions, receipts provide proof that you spent the money on the clothes you are claiming a deduction for. Receipts for the amounts you spend maintaining your work clothes, such as for dry cleaning, shoe-shining and tailoring services are equally important since these costs are deductible too.

Include your clothing costs with your other "miscellaneous itemized deductions" on the Schedule A attachment to your tax return.

Work clothes are among the miscellaneous deductions that are only deductible to the extent the total exceeds 2 percent of your adjusted gross income. Add all the deductions in this category together—other deductions include work-related travel, work tools and professional journals—and subtract two percent of your adjusted gross income. This is the amount you can deduct. Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms.

Whether you have a simple or complex tax situation, we've got you covered. Feel confident doing your own taxes. Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest. For Simple Tax Returns Only. Top Tax Write-offs for the Self-Employed. Employees Can Deduct Workplace Expenses. Tax Tips for Employees who Work at Home. Tax Tips for Part-Time Workers.

Video: Guide to Summer Jobs and Taxes. Estimate your tax refund and where you stand Get started. The general rule is that when business clothes are suitable for everyday wear, a deduction is not allowed.

Cecil Mella was a tennis professional at two clubs in the Chicago area. As the clubs did not require specific brands, Mr Mella purchased his preferred tennis clothes and shoes and deducted the expense on his tax return. Tennis shoes and athletic clothing worn at work could also be worn for personal reasons while off the clock. Clothing was to be neat, professional, and conservative.

Hamper incurred considerable expense to maintain these requirements and deducted the related costs as unreimbursed employee expenses on her tax return. The IRS challenged this deduction claiming that maintaining a professional wardrobe is a personal expense. A big hurdle to deducting clothing costs is proving that the clothing is not suitable for general wear. Similarly, Ms. The IRS sets a high bar to determine whether you could wear your business wardrobe outside of work!

Most grooming costs are considered personal. Even in cases where people have been told to maintain a specific appearance — such as Ms. Hamper — the IRS has denied a deduction.