Tax Deduction Consulting: Dry Cleaning Gorham ME
Michael J. DellOlio & Associates, L.L.C.
Education: B.S.,MBA,J.D.,NASD Series 6,7,24,63,65; Maine Insurance License
Years of Experience: 24
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, BuySell, Compensation Plans
Tax Deduction Consulting: Dry Cleaning
Dry Cleaning Tax Deduction
The dry cleaning tax deduction is a good example of a family of deductions that are work related expenses. The rules that allow this deduction can be applied to several other expenses.
You may take a dry cleaning tax deduction when you are cleaning a uniform that is a required part of your job. The general rule of thumb in so many business related expenses is ordinary and necessary. When a person is making a tax deduction on his personal taxes, ordinary and necessary actually take on opposite meanings. It is not a legitimate tax deduction when the clothing that is worn is considered ordinary. For example, an attorney might try to make the case that a suit is necessary for his job. It is almost a uniform and it is certainly the "ordinary" attire of such a professional.
However, it is not really necessary. In this case the idea is more that any suit or any style of clothing that satisfies the dress codes of the courtroom is ordinary. It does not have to be a blue suit or a pin stripped suit to qualify. On the other hand, a policeman does not have this option if his department requires a specific uniform. He must wear it in order to earn his income and the cost of maintaining and cleaning it is something that he does not due because it is ordinary to do so at all. It is necessary.
Therefore, the cost of dry cleaning it to maintain the standards necessary for the maintenance of his income flow is something that can be deducted from his taxes when he itemizes his deductions. If the policeman is required to provide specific equipment, this follows the same rule and is deductible. The necessary uniform rule applies to any profession. Even the waitress and many factory workers are required to wear special uniforms as part of their employment. When the choice of dress is not optional, the clothing is considered necessary and the cost of dry cleaning it is deductible.
It is important to remember that this deduction is negated when you are paid a clothing allowance to maintain your uniform. The deductible amount is then limited to what is called un-reimbursed expense. It is also important to remember that such an expense must also be reasonable. If you live in California and ship your uniforms to Hong Kong for dry cleaning because you think they do a better job, this is your option, but do not try to include the shipping expenses on your tax return.
When you take a standard deduction and do not itemize, it is all of these l...