Unveiling the Truth: Work Clothing & Tax Deductions
As an artist, creative, or self-employed individual, tax season can feel especially daunting. There are so many different rules and regulations when it comes to eligible deductions, and many people feel overwhelmed trying to figure out what they can submit as a deduction. After you get comfortable with what counts and what doesn’t, the process becomes a breeze, but I’m here to help you if you feel the least bit confused.
There’s nothing worse than submitting your tax information yourself or sending everything to an accountant and having items get rejected as deductions. When it comes to clothing or work uniforms, the rules are pretty strict, but there are some instances where these items can be a line item in the deductions section of your taxes. Here’s what you need to know:
Clothing Must be Required
In order for a work-related uniform or outfit to be tax-deductible, it has to be mandatory for your line of work. For instance, if you are a painter, you may be able to deduct the cost of your painting smocks. Singers and performers may also be able to deduct the cost of their performance costumes. Lastly, if you are required to wear protective clothing, that can be deducted. Perhaps as a welder or sculptor, you need a proper helmet to do your job, and that is generally considered a deductible item. Now, it’s important to keep in mind that there’s one big caveat to all of this: deductible items are ones that cannot be worn in everyday life.
Clothing Used in Day-to-Day Life is Ineligible
If there’s a specific polo with a logo you are required to wear for your job, you can deduct that. However, the khaki pants that are required alongside the polo are not deductible because those can be worn on the weekend or at other times outside of work. If anything used in your creative process or performances can also be worn to brunch, while running errands, or at your home on the weekend, they are ineligible to be counted as a deduction. This includes professional clothing. You may only wear suits and blazers for important client meetings, but since you could wear those items in other settings, they do not count as a tax deduction.
Record Proof Along the Way
Now that you better understand what items can and cannot be deducted from your taxes, you’ll be able to properly record eligible clothing deductions. In order to submit a deduction, you’ll need to save receipts and proof of purchase. This doesn’t have to be done in a particular way, just whatever works and is a sustainable tracking method for you.
When in Doubt, Partner with a Bookkeeper
Partnering with a bookkeeper may seem overwhelming, but it can save a lot of time and money in the long run. Not only will you be able to avoid sorting through your yearly collection of excel documents, but you can be confident that what is getting submitted to the IRS is correct.
Ready to bring on a bookkeeper to your team and feel confident in your financial decisions? Fill out my contact form to schedule a free consultation to see what services we offer.
