Clothing allowances for employees
Varies
Can You Write Off Clothing Allowances for Employees?
Short answer: A flat clothing allowance is taxable wages; reimbursing uniforms not suitable for street wear under an accountable plan is tax-free.
Fringe benefits are taxable wages unless a specific exclusion applies; the employer still deducts the cost either way, except where the law says otherwise.
Records to keep: Keep the receipt, proof of payment, and a note or log showing business use; for mixed-use items, track the business percentage.
Clothing allowances for employees
Varies
General Business
A flat clothing allowance is taxable wages; reimbursing uniforms not suitable for street wear under an accountable plan is tax-free.
Business justification
A flat clothing allowance is taxable wages; reimbursing uniforms not suitable for street wear under an accountable plan is tax-free. Fringe benefits are taxable wages unless a specific exclusion applies; the employer still deducts the cost either way, except where the law says otherwise.
Category
- Business Equipment & Products