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THOSE ARE UPS UNIFORMS, NOT WEDDING DRESSES

October 17, 2006

Taxpayers can deduct the cost of work uniforms as a "miscellaneous itemized deduction," subject to a 2% of adjusted gross income floor, and to the straight-face test. A Miami couple struggled with this second test in a Tax Court decision yesterday:

Petitioners deducted $5,625 for uniforms for the taxable year and stipulated that the uniforms Mr. Harrell wore were washed and ironed at petitioners' home. The expense of uniforms is deductible under section 162(a) if: (1) The uniforms are of a type specifically required as a condition of employment; (2) the uniforms are not adaptable to general usage as ordinary clothing; and (3) the uniforms are not so worn.

Mr. Harrell, in his position with United Parcel Service, was required to work in a clean uniform every day. Mrs. Harrell washed and ironed Mr. Harrell's work uniforms at home. The employer provided the uniforms but did not reimburse Mr. Harrell for the cleaning of his uniforms. Although petitioners would be entitled to a deduction for the cost of washing and ironing the uniforms, they provided no evidence upon which we can estimate the amount thereof. At trial, Mrs. Harrell testified that the amount claimed was a guess that was based on the hypothesis of paying to have the uniforms cleaned commercially. Deductions are based on actual, not hypothetical, costs.

As the uniforms were not sent to a commercial cleaner but were laundered and ironed at home, the amount claimed is not allowable. Moreover, the amount claimed ($468.75 per month) appears grossly inflated. In the absence of a rational basis for estimating the cost of the cleaning of the uniforms, we sustain respondent's disallowance of this component of the claimed unreimbursed employee and other miscellaneous expenses.

I think that would mean he was changing uniforms three or four times each day, unless hypothetical laundries in Miami are much more expensive than real ones in Des Moines. Still, if you are going to use a hypothetical laundry, why cheap out?

Cite: Harrell, T.C. Summ. Op. 2006-165

UPDATE: The TaxProf is on the case.

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