Can You Deduct Clothing as a Business Expense? Here’s What the IRS Says!

If you’ve ever wondered whether you can write off that sleek new ‘fit or branded business attire for a photo shoot, you’re not alone. As entrepreneurs and professionals, we invest in looking the part—but does the IRS see it as a deductible business expense? Let’s break it down.

IRS Rules on Deducting Work Clothing

The IRS has a simple test when it comes to clothing deductions:

✅ Required for your job – The clothing must be specifically mandated for your work or business.

✅ Not suitable for everyday wear – Even if you only wear it for work, if it could be worn outside of work, the IRS won’t allow the deduction. This even means things you normally would not wear outside of work/that branding photo shoot.

Under IRC §162(a), business expenses must be ordinary and necessary to be deductible. Treasury Regulation §1.162-5 further clarifies that clothing is only deductible if it meets both of the above criteria.

Hey there! I’m Katy Murray, an entrepreneur and Human Resources professional, and I’m incredibly passionate about both. I absolutely love how much these two areas overlap, and I’m always finding ways to pull tricks from one and apply them to the other. Whether you’re a one-person operation or managing a small team, I can’t stress enough how crucial it is to document your HR processes for long-term success.

When most people think of Human Resources (HR), they picture big companies with hundreds of employees and complex departments. But honestly, HR is just as vital for us small business owners. Whether you have one employee or ten, documenting your HR processes is key to staying compliant, protecting your business, and creating a healthy work culture. I’m excited to share some practical tips and easy steps to help you start documenting like a pro, no matter the size of your business!

Disclaimer: The information provided in this blog post is for general informational purposes only an...

As an online entrepreneur or small business owner, handling your finances can be a complex task. One crucial aspect of financial management is ensuring that you correctly prepare and distribute 1099 forms to your contractors. A lot of new business owners get blindsided on this one!

In this blog post, we'll delve into what 1099s are, who should receive them, the different types of 1099 forms, the deadlines you need to meet, and the tools that can help you efficiently manage this process.

What Are Contractors?

Before we dive into 1099s, let's define contractors. Contractors are individuals or entities that you hire to perform specific services or tasks for your business. Unlike employees, contractors are not on your company's payroll, and you typically don't withhold taxes from their payments. Instead, they are responsible for handling their own tax obligations. Head over to this blog post where I discuss in more detail Employees vs. Contractor (one of our most asked questions!).

Who...