Beginning in 2018, unreimbursed employee expenses are no longer eligible for a tax deduction on your federal tax return however, some states such as California continue to provide a deduction on your state tax return if you qualify.
Key Takeaways
- Certain job-related expenses, such as theatrical costumes, hard hats, and other safety gear, may be deductible.
- Items that can be worn outside of work, including overalls, white dress shirts, and bibs, are not deductible, even if required on the job site.
- Include clothing costs with other miscellaneous itemized deductions on the Schedule A attachment to your tax return.
- The total of all miscellaneous deductions must exceed 2 percent of your adjusted gross income to be deductible.
If you’re a salaried employee, you may be surprised to learn that your deductions include certain job-related expenses.
Step 1: Which work clothes are necessary and usable only for work?
Determine which work clothes are necessary for your job but not suitable to wear outside of work. However, just buying clothes specifically for work and never wearing them at any other time isn't good enough. The IRS has accepted deductions for theatrical costumes, hard hats, and other safety gear.
Among the items that do not qualify are overalls, white dress shirts, and bibs even if required on the job site. For example, even though your company requires you to wear a suit each day, you cannot deduct their cost since you can wear the suits to weddings, job interviews, and other occasions that don't relate to work.
Step 2: Document your employer’s policies
Keep a copy of your employer's policy. For example, a pilot was able to present written proof that his employer required him to wear shoes not suitable for everyday use and to incur costs of having them polished regularly when the IRS questioned his deduction. The pilot was ultimately able to deduct the cost of the shoes as well as the expense of keeping them polished.
TurboTax Tip:
Keep a copy of your employer's policy and save your receipts to provide proof of expenses.
Step 3: Save your receipts
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.
Step 4: Claiming the deduction
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, when you use TurboTax, we’ll help you determine which clothing qualifies for this deduction, and we’ll calculate how much you can deduct.
Tips
- Most military uniforms can be worn off duty, so are not a guaranteed deduction unless the rules prevent you from wearing them outside of work. If you receive a clothing allowance or other type of reimbursement, then you must reduce your deductible expense by the amount of allowance you receive.
- You can find your adjusted gross income on line 8b of your Form 1040.
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