To get the final answer on what is and is not deductible when it comes uniform purchases, contact an accountant or an IRS representative. With that being said, here are some guidelines that will help you decide if your uniform requirements will allow your employees the option of deducting the costs of the uniform when tax time arrives.
Choices in who pays for a company uniform may be affected by who (if anyone) is going to be eligible to take a tax deduction at the end of the year. If your employees can take the deduction, start early getting the receipts and other paperwork together for them. Make sure your employees know to ask their tax preparer about the deductions.
There are two questions that need to be asked when it comes to uniforms that may be eligible for use as a tax deduction:
1. Is wearing the specified uniform part of the requirements for employment?
2. Can the uniform be worn for everyday use?
When a specific uniform is required to be worn by employees, there is the added cost of the uniform and the government will allow this cost to be used as a deduction IF the uniform cannot be used for everyday use.
Reminder-consult a tax professional for guidance on your specific situation when it comes to clothing and uniform deductions for tax purposes. Below are general guidelines.
EXAMPLE OF UNIFORMS THAT QUALIFY FOR A DEDUCTION
Law enforcement uniforms-they cannot be used for everyday use like going to the beach or going to the movies.
EXAMPE OF UNIFORMS THAT DO NOT QUALIFY FOR A DEDUCTION
A t-shirt with the company logo and blue jeans-both the shirt and the jeans can be used for everyday use like hiking or shopping.
For both uniforms that qualify (like law enforcement uniforms) for a deduction and those that don’t qualify (like t-shirts), go to AllUniformWear.com
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