The right for the tax deductions of work clothing depends on the company’s field of business and operations. The general rules for tax deductions lack detail so it can often be difficult to draw the line. The general rule, however, is that only clothing which cannot be used outside of work can be deducted. If the work clothing can be worn outside of work then they cannot be deducted as they are considered to be a livelihood expense.
Suits, shirts, ties and dresses are all clothes, which are widely used during free-time as opposed to overalls, medical outfits as well as protective clothing for bakeries, for example. All protective and safety clothing related to occupational safety are tax deductible. For example, forest workers can deduct their clothing and equipment or thermal overalls as they are related to occupational safety. The expenses for work clothing must also be reasonable within the fiscal year.
Work clothes are different from the protective equipment necessary for work such as respirators, welding masks and goggles, which are always tax deductible. The maintenance and cleaning of this equipment is also deductible. Ergonomic footwear is also deductible for surgeons, for example. However, the footwear must be left at the workplace facility at the end of the working day.
Outfits that the company has bought for fairs or other occasions to promote the company may be deductible depending on the case. This stems from the idea that if an employee wears this promotional clothing during their free-time, they are promoting the company at the same time. For this reason it may be registered into accounting as a marketing expense. However, a black suit would not under any circumstance.
If you are thinking about the deduction of work wear, it is important to ask yourself this question: Is this garment only for use at work and more importantly, can I use this clothing outside the workplace?