Discussion:Clothing Allowance in W-2

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Discussion Forum Index --> Basic Tax Questions --> Clothing Allowance in W-2
Discussion Forum Index --> Tax Questions --> Clothing Allowance in W-2

Willeytaxes (talk|edits) said:

2 April 2009

I have a client that is local government with a police force. The police department employs plain clothes detectives. Those detectives are reimbursed (after adequate documnetation) for out of pocket costs for clothing and the laundering of those clothes. The clothing, which could be described as street clothes, are a requirement of their employment as detectives. The rationale is that the regular officers are furnished uniforms as a paid, nontaxable fringe benefit; why should the detectives be any less "compensated".

Is there any exception to the general rule - or argument that could be made to avoid including the reimbursement in their W-2 taxable wages?

Ddoshan (talk\|edits) said:	2 April 2009
Not that I know of. But if you think about it why should there be as they are getting decent clothes to wear and being reimbursed for. Pretty nice deal for a small price.

Illini (talk|edits) said:

2 April 2009

I've been out of the military for some time now, but I think there was a uniform allowance for enlisted folks but I don't remember if the allowance was tax-free or not.

I remember you could only deduct the cost of fatigues NOT dress uniforms, but I think the fatigues were issued to us. I don't remember every paying for fatigues.

Officers had to buy their own dress uniforms, but I don't remember getting any allowance. The end result was our dress uniforms were non-deductible and out of pocket, so the detectives have a good deal, so quit their griping!

Mikex2e7n5 (talk\|edits) said:	13 April 2009
A good argument for NOT avoiding the inclusion of the reimbursement in the W-2.....two words 'PREPARER PENALTY'

Tkelly911 (talk\|edits) said:	13 April 2009
The cost and upkeep of police uniforms are deductible. Reimbursement, provided it meets the standards of the Regs is excludable from income for such expenses. But street clothes are not deductible. Therefore the subsidy of civilian clothing must be included in wages. Requirement as a condition of employment is irrelevant where personal expenses are involved.

Jdugancpa (talk\|edits) said:	14 April 2009
Illini, I've never been in the military, but if you paid for your own dress uniform, and a dress uniform is required for an officer in the military, the expense would be deductible on Form 2106 as an unreimbursed employee expense. I don't think the cost of that item alone is likely to exceed 2% of AGI, so there very likely is no benefit to the deduction, but it should be deductible.