Don Brooks & Associates, Inc. - Clothing for Your Job is Not Always Deductible

Main Menu

Accounting

Tax Preparation

Tax Tips Small Business

Tax Tips Personal

Economic Stimulus Act of 2008

Tax Tips Small Business

Clothing for Your Job is Not Always Deductible

Small Business Quick Tip

The Social Security wage base increases to $102,000 in 2008, up from $97,500 for 2007. This means that you are no longer required to withhold social security tax for employees after meeting this threshold. However, you are required to withhold Medicare taxes regardless of the amount of wages paid.

Clothing for Your Job is Not Always Deductible

Understanding the rules

Many taxpayers are required to maintain a certain personal appearance or wear special clothing for work. However, not all your purchases for work-related attire or personal grooming reap a tax deduction. If you are required to wear a uniform or other special clothing that has the name of your employer or some other logo on it, that cost is deductible as a miscellaneous employee business deduction.
Other employees, such as models, flight attendants, or other professionals who are required to maintain a highly professional, well-groomed appearance, may find that the cost of their expensive clothing and cosmetics will not save tax dollars. Even if your employer tells you that you must wear certain clothing, if it is not in the nature of a uniform, the cost is personal.

Remember, the general rule of thumb is that if the clothing is suitable for every-day wear, it's not deductible.

< Prev		Next >

What is an Enrolled Agent and why should I care?

Click Here to find out

Tax Tips Personal

Interest on Summer Recreation May Be Deductible

Your motor home or boat could yield a deduction

If you own a boat or motor home that is fully equipped with kitchen and sanitary facilities and you use it as a "second" home, the interest you pay on it is probably deductible on your tax return. Although a fishing boat without facilities won't qualify, most motor homes and campers do. If you're looking to buy a boat that doesn't qualify as a second home, you may want to consider paying for it with a home equity loan. That way, the interest is generally deductible. As with most tax rules, there are exceptions and limits so check with a tax expert before you sign on the dotted line.

Personal Quick Tip

Beginning January 1, 2008, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) are:

50.5 cents per mile for business miles driven (58.5 cents per mile for miles driven after July 1, 2008);
19 cents per mile for all miles driven for medical or moving purposes (27 cents per mile for miles driven after July 1, 2008); and
14 cents per mile for all miles drive for charitable purposes.