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Taking an Itemized Deduction for Job Expenses 
 
by kmhagen July 26, 2005

Exception for Computer Used in a Home Office

If you use the computer in what qualifies for tax purposes as a home office, you do not have to meet the 50% use test. You can take depreciation under GDS, the section 179 deduction, and the special first year depreciation allowance.

Use Form 4562, Depreciation and Amortization, to calculate your depreciation deduction. But if you file Form 2106 or 2106EZ, you would report the depreciation on that form, and not on Form 4562.

Tools

You can deduct the cost of tools that you use in your work either as an expense or as depreciation. If the tools generally wear out and are thrown away within one year, they are a deductible expense. If they last longer, you can take a depreciation deduction. Depreciation is calculated on Form 4562, and Internal Revenue Service (IRS) Publication 946, How To Depreciate Property, has specific instructions and tables to determine the amount of depreciation you can deduct.

Work Clothes and Uniforms

You can deduct the cost and upkeep (laundry, dry cleaning, mending and repairs) of work clothes and uniforms if they meet the following two conditions:

  1. You must wear them as a condition of your employment, and
  2. The clothes are not suitable for everyday wear.

Clothing that is distinctive will not necessarily meet the first test – it must be required. And for purposes of the second test, the fact that you do not wear your work clothes off the job is not sufficient. The work clothes must not be suitable for normal everyday wear.

Some examples of employees who would normally meet these tests include health care workers, delivery persons, transportation workers, law enforcement officers, firefighters, and musicians and entertainers who use theatrical apparel.

Work clothing such as a business suit, bib overalls, standard shoes, or blue work clothes would not normally meet the requirements, since these could be used outside your work.

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