When Work Clothing Is Tax-Deductible for Contractors
Work clothing is deductible only if not suitable for everyday wear. For contractor employees, the OBBBA permanently killed personal deductions — use an accountable plan instead.
Steel-toed boots. FR-rated coveralls. Hard hats. Hi-vis vests. If you're a trade contractor, your work wardrobe isn't exactly what you'd wear to dinner. The good news: most of it is deductible. The bad news: the rules are tighter than you think, and the OBBBA just made it permanent that employees can't deduct work clothing on their personal returns — period.
The Core Rule
Work clothing is deductible only if it is not suitable for everyday wear. It doesn't matter if you bought it exclusively for work and never wear it off the job. If it could pass as street clothes, it's not deductible.
Business suits? Not deductible. Khaki pants? Not deductible. Work boots that look like normal boots? Not deductible. Watches? Never deductible, even if you use them to time jobs.
What IS Deductible
Uniforms. Company uniforms with logos or insignia that aren't suitable for personal wear. Airline pilot uniforms, nursing scrubs, team uniforms — these all qualify.
Protective gear. Steel-toed boots, safety glasses, insulated coveralls, gloves, hard hats, FR-rated clothing. If it's required for safety on the job and you wouldn't wear it to the grocery store, it's deductible.
Specialized apparel. Hospital scrubs, mechanic's grease-stained overalls, stage performer costumes — industry-specific clothing that can't reasonably be worn off-duty.
Promotional clothing. Logoed shirts or jackets worn to promote your business, as long as they're clearly marked and not used personally.
Laundry and dry cleaning. If the clothing itself is deductible, so is the cost of cleaning and maintaining it.
Independent Contractors vs. Employees
If you're self-employed — a sole proprietor or independent contractor — qualifying work clothing goes on Schedule C as a business expense. Keep receipts and a record of the business purpose.
If you're an employee, the situation is different. The Tax Cuts and Jobs Act eliminated miscellaneous itemized deductions for 2018–2025, and the OBBBA made that elimination permanent. Employees can never deduct work clothing on their personal tax returns again, even if the clothing qualifies.
The Fix for Employees: Accountable Plans
Instead of deducting work clothing yourself, get your employer to reimburse you under an accountable plan. The reimbursement is tax-free to you and fully deductible by the employer. No payroll tax. No income tax.
Some states — including California, Illinois, and Montana — require employers to reimburse necessary work expenses. In other states, it's voluntary. Either way, an accountable plan is the clean way to handle it.
The accountable plan rules are simple: the expense must have a business purpose, the employee must substantiate it within 60 days, and any excess advance must be returned within 120 days.
If you're an S-Corp owner wearing steel-toed boots to job sites, you're an employee of your own company. Your personal deduction is gone permanently. Set up an accountable plan and reimburse yourself through the business.
The Bottom Line
For contractors, most safety gear and specialized work clothing is deductible — but only if it's not suitable for everyday wear. Self-employed contractors deduct on Schedule C. Employees must use accountable plan reimbursements. The OBBBA closed the personal deduction door for employees permanently, so get your accountable plan in place if you haven't already.
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Adam Libman is a California Registered Tax Preparer with 25 years of experience and over 100,000 tax returns reviewed.