Most professions require you to dress appropriately for work. You may need to wear a suit if you work as an accountant in a firm. This may be costly for you if you don’t have one in your closet. Sometimes, you can deduct the cost of your work clothes from your tax bill.
We’ve compiled a detailed guide on what you can and can’t claim to get the most out of your tax deductible work wear. Have a look at the following to know more about the workwear expenses claim.
Claimable Work Wear Tax-Deductible
Many workwear tax deductions can be claimed, such as buying clothes that are not suitable for everyday wear, such as:
- Protective clothing
- Work wear code dress that defines your profession
- Uniforms that stand out
Special gear you wear to protect yourself from illness or injury in your profession or the environment in which you work. These items should be appropriately secured, which is essential for security. It may include:
- UV-protective and fire-resistant workwear
- Slip-resistant nurse’s shoes
- High-visibility vests
- Concreters’ rubber boots
- Steel-covered shoes, gloves, overshoes, and heavy-duty shirts and pants
- The smocks, overs, and aprons you wear at work protect your regular clothes from injury or dirt.
Workwear Tax Deductible That Can’t Be Claimed
Work wear can only be claimed for items related to a particular job and cannot be worn outside the workplace. It indicates:
- You cannot claim the cost of purchasing workwear or cleaning items such as business clothes unless they are part of a mandatory uniform. These items are used in everyday life.
- If you work in a clothing store, you can’t claim the price of the clothes you buy there, even if you have to wear them to work, because those things are unrelated to your work. After all, you wear it outside too.
- You cannot claim casual clothing, such as shorts, jeans, socks, shirts, and closed shoes, because it is not considered ‘protective clothing’ or workwear.
Keep the Receipts
Keep your receipts as proof of spending money on workwear when making a claim. Receipts for your workwear maintenance costs, such as shoe shine, dry cleaning, and sewing services, are also essential because these expenses are tax-deductible.
Learn How to Claim the Tax Deduction
Include your clothing prices in Schedule A with your other “miscellaneous itemized deductions” on your tax return. Workwear is one of the miscellaneous deductions that must be more than 2% of your adjusted gross income to be eligible for tax deductions. Add 2% of your adjusted gross income from all deductions in this category. The remaining amount is what you can claim from ATO. Hopefully, the above tax-deductible workwear guide will help you claim your deduction. Remember, work safety and wearing proper gear is your responsibility. However, if you feel the equipment is expensive or its maintenance is costing you a lot, you can always file a claim for a refund to help with the finances.