When Work Clothing Is Deductible

Deductible Clothing

As a general rule, clothing is not tax-deductible, even if it is purchased for work or business use. The only exception is if the business clothing is not suitable for street wear.

Clothing That Is Not Tax-Deductible

Clothing used for work or business is not deductible if it is suitable for everyday wear.¹ This is so even if the clothing was purchased solely for work and is not worn outside of work.

Examples of clothing that is not deductible are business suits, skirts and dresses, and other professional business attire.

Likewise, casual clothing worn for work, such as khaki pants or plain white shirts, is not deductible. Boots and shoes suitable for everyday wear are also not deductible. Watches are never deductible, even if used for business purposes.

Deductible Clothing

Uniforms

Uniforms that are not suitable for everyday wear are deductible when required as a condition of employment. For example, airline pilots may deduct the cost of their required uniforms and insignia because such attire is distinctively representative of their employer and not appropriate for personal wear.²

Similarly, baseball players may deduct the cost of their team uniforms and gear, as confirmed in Rev. Rul. 70-476, which distinguished athletic uniforms from general sportswear.³

Nurses may also deduct required nursing uniforms that are unsuitable for street wear.⁴

Protective Gear

Protective equipment necessary to perform one’s job safely is fully deductible under tax code Section 162(a) when required as a condition of employment.⁵

For instance, in Mullen, an electrician successfully deducted safety shoes that protected against electrical hazards.⁶

Likewise, a long-haul truck driver in Nolder was permitted to deduct insulated coveralls, steel-toed boots, safety glasses, and gloves used exclusively for long freight runs in harsh weather conditions.⁷

Specialized Apparel

Industry-specific or performance-based clothing is deductible if it is not adaptable for general wear.

Hospital employees in Crawford were allowed deductions for hospital scrubs that could not reasonably be worn off duty.⁸

Similarly, in Wilson, a mechanic was permitted to deduct the cost and laundering of grease-stained overalls required for work.⁹

In the entertainment industry, a stage performer in Teschner deducted “flashy” custom performance outfits because they were costume pieces unsuitable for daily use.¹⁰

Promotional Clothing

Clothing worn to promote a business, when clearly required and marked with a logo, is deductible as long as it is not used personally.

In Levitt, a casino dealer was allowed to deduct logoed shirts distinctive to his employer.¹¹

Similarly, in Williams, the court upheld a deduction for a coat with the Amway logo, worn to advertise the taxpayer’s distributorship and distinguish his promotional activities from his personal life.¹²

Laundry and Dry Cleaning

If work clothing is deductible, the cost of dry cleaning, laundering, and otherwise maintaining such clothing is also deductible.¹³

Deductions for Work Clothing Used by Independent Contractors

Independent contractors (that is, taxpayers who are non-employees and who are in business for themselves) can deduct work clothing not suitable for everyday wear as a business expense on IRS Schedule C. The only requirement is that the clothing be ordinary and necessary for the business involved. The independent contractor should keep a record of the expense.

Deductions for Work Clothing Used by Employees

Before 2018, employees could deduct work clothing not suitable for everyday wear as a miscellaneous itemized deduction (subject to a 2 percent floor). However, all miscellaneous itemized deductions were prohibited for 2018 through 2025 by the Tax Cuts and Jobs Act.

The One Big Beautiful Bill Act (OBBBA) made permanent the elimination of such deductions. Thus, employees cannot deduct the cost of work clothing on their personal tax returns, even if it’s not suitable for everyday wear.

Instead of deducting work clothing themselves, employees should get their employers to reimburse them for the cost of deductible work clothing (or pay for it in advance). Such reimbursement is required in a few states, including California,¹⁴ Illinois,¹⁵ Montana,¹⁶ New Hampshire,¹⁷ North Dakota,¹⁸ and South Dakota.¹⁹ Otherwise, it’s purely voluntary on the part of the employer.

If the reimbursement (or advance payment) is made under an “accountable plan,” the amount is tax-free to the employee and tax-deductible by the employer.²⁰

An accountable plan is simply a set of procedures ensuring that employees are reimbursed (or advanced money) only for work-related expenses while performing services for the company. An accountable plan needs to follow three simple rules:²¹

• The reimbursed expenses must be for business use (not personal use).

• The employee must make an adequate, timely accounting of the expenses.

• The employee must return excess payments on a timely basis.

Business purpose. If the clothing is not suitable for everyday wear, it’s pretty clear that it is for business. If you want to avoid having the IRS recharacterize a reimbursement for work clothing as employee wages, the reimbursed amount should ideally be paid with a separate check or direct deposit.

Adequate accounting. The employee must provide substantiation and documentation sufficient to enable the employer to identify the specific nature of the expense and conclude it is a bona fide business expense.

Excess payments. Any excess payments to the employee must be repaid within a reasonable time or they will be treated as taxable wages. A reasonable time can be a fixed date—such as within 120 days after the expense was paid, within 120 days after the company provides the employee with a periodic statement, or some other practical time frame.

The IRS does not require that the employer adopt a written accountable plan; following the accountable plan rules is sufficient. However, it’s always a good idea to have a written plan. This can be a very simple document that restates the accountable plan rules.

We’ve created a sample plan for your use. Go to our Resources section and click on Business Owner Tools. Choose Sample Employer Plans from the menu, then click on Accountable Plan. Keep a copy of the signed plan in your business records or your corporation’s minutes.

An accountable plan is not subject to the non-discrimination rules that apply to 401(k)s or other ERISA-qualified retirement plans. In other words, employers can discriminate among employees. Thus, an employer could decline to reimburse some employees for work clothing while reimbursing others (except in those states that require reimbursement).

Payments to employees for work clothing that do not comply with the accountable plan rule are considered taxable wages to the employee and must be included in the employee’s W-2. The employer must withhold income taxes and the employee’s share of Social Security and Medicare taxes from the payments. The employer deducts the payments as employee wages.

Takeaways

Most work clothing is not tax-deductible, even if purchased exclusively for the job, unless it is not suitable for everyday wear.

Deductible items generally fall into narrow categories such as required uniforms, protective gear, specialized industry apparel, or clearly identifiable promotional clothing. When clothing qualifies, related cleaning and maintenance costs are also deductible.

For independent contractors, qualifying work clothing can still be deducted as a business expense.

Employees, however, cannot deduct work clothing on their personal tax returns, regardless of its suitability for everyday wear, due to the OBBBA’s permanent elimination of miscellaneous itemized deductions. Instead, employees should seek employer reimbursement under an accountable plan, which allows the employer to deduct the cost while providing the reimbursement tax-free to the employee.

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1  Pevsner v. Commissioner, 628 F.2d 467 (5th Cir. 1980)

2  Bartling v. Commissioner, 9 CCH TCM 458 (1950)

3  Rev. Rul. 70-476

4  Rev. Rul. 70-474

5  IRC Section 162(a)

6  Mullen v. Commissioner, T.C. Memo 1964-44

7  Thomas G. Nolder v. Commissioner, T.C. Summary Opinion 2012-50

8  Crawford v. Commissioner, T.C. Memo 1993-192

9  Wilson v. Commissioner, T.C. Memo 2001-301

10 Teschner v. Commissioner, T.C. Memo 1997-498

11 Levitt v. Commissioner, T.C. Summary Opinion 2001-147

12 Williams v. Commissioner, T.C. Memo 1991-317

13 Bickel v. Commissioner, T.C. Memo 1966-202

14 California Labor Code Section 2802

15 Illinois Wage Payment and Collection Act, Section 9.5

16 Montana Code Annotated Section 39-2-701

17 New Hampshire Statutes Section 275:57

18 North Dakota Century Code Section 34-02-01

19 South Dakota Codified Law Section 60-2-1

20 Treasury Regulation Section 1.62-2(c)(4)

21 Treasury Regulation Section 1.62-2(c)

Viktoriya Barsukova, EA

CEO | Enrolled Agent | MBA

San Diego Precision Tax Service Inc.

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Serving all 50 states

Phone: +1 (619) 910-1040

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This article is for general informational and educational purposes only and does not constitute tax, legal, or accounting advice. Tax rules are complex and fact-specific, and their application may vary based on individual circumstances. Readers should consult their own tax advisor before taking action. This material is based on publicly available guidance, court decisions, and professional tax education sources, including Bradford Tax Institute materials.