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Clothing Allowance

Corporate Law Discussions

Clothing Allowance

Postby Dyami » Sun Dec 04, 2016 11:35 am

s About Taxes)/clothing allowance Advertisement Expert: John Stancil, CPA - 1/6/2010 I work for a government and had received a clothing allowance for years. I am now being told the clothing items I purchase either will be tax exempt- ie: coats, boots and shirts. Or will be included as additional compensation as a taxable fringe benefit. Is there something in writing that states this or is this true?

Thank you for your time.
Dyami
 
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Joined: Wed Jan 22, 2014 5:09 am

Clothing Allowance

Postby Bidziil » Mon Dec 05, 2016 8:11 pm

s About Taxes)/clothing allowance Advertisement Expert: John Stancil, CPA - 1/6/2010 I work for a government and had received a clothing allowance for years. I am now being told the clothing items I purchase either will be tax exempt- ie: coats, boots and shirts. Or will be included as additional compensation as a taxable fringe benefit. Is there something in writing that states this or is this true?

Thank you for your time.
Bidziil
 
Posts: 47
Joined: Tue Jan 14, 2014 4:42 am

Clothing Allowance

Postby Chisholm » Mon Dec 05, 2016 11:32 pm

Margaret,

Thanks for your question.

An allowance is normally part of a non-accountable plan, meaning you get a set amount for clothing and do not report to your employer how(or if) you spent the money. In this situation, the allowance is fully taxable.

On the other hand, if they supply the clothing, or if you receive a reimbursement for receipts of your purchases it is not taxable income if the clothing meets the IRS rules for deducting the cost of work clothing.  It must be clothing specifically for the job, not appropriate in other settings.

Hope this helps.

John Stancil, CPA
Chisholm
 
Posts: 40
Joined: Wed Jan 08, 2014 2:59 am


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