A professional musician’s purchase of concert clothing is a tax-deductible expense, but you need to make sure that you meet the IRS requirements for “uniforms” in order to ensure that the expense is allowable. The IRS has a two-part test to determine if work clothing is tax-deductible:
- You are required to wear the clothes as a condition of your job.
- The clothes are not suitable for everyday wear.
If you are a W-2 employee, you will deduct concert clothes on your Schedule A, under Miscellaneous Expenses, as an unreimbursed employee expense. This category of expenses is, unfortunately, subject to a 2% limit, meaning that only your expenses which exceed 2% of your adjusted gross income are eligible for the deduction. Luckily, the list of Miscellaneous Expenses subject to the 2% limit is large and includes other popular deductions, including professional dues, home office expenses, tools and supplies, travel for work, union dues, tax preparation fees, and investment management fees. So most musicians have little trouble breaking the 2% limit, although it still means that you don’t get any tax deduction on the first 2% of your expenses. If your AGI is $50,000, that is $1,000 in expenses that are not counted every year!
The IRS states that “Musicians and entertainers can deduct the cost of theatrical clothing and accessories that aren’t suitable for everyday wear.” Clearly, tails and tuxedos are not everyday wear, but other concert clothes for men and women, such as black pants or shoes, could be considered for everyday use. The IRS cautions that it is not enough that you do not wear your work clothes away from work; the requirement is that the clothes are “not suitable for taking the place of your everyday clothing.”
For details, see Miscellaneous Expenses, IRS Publication 529.
If you are paid as a 1099 (independent contractor), you can deduct your required concert clothes on Schedule C as a business expense, which is not subject to the 2% requirement. If you have both W-2 and 1099 gigs, you may be able to allocate your concert clothes as would be beneficial for your tax return, assuming both employers require the clothes.
In the event your tax return is audited, you should be able to provide documentation to support your deduction, including:
- receipts describing the clothes purchased;
- documents from your employer listing the required dress code;
- you will need to say both that you do not wear the clothes at any time other than concerts AND that the clothing is not suitable for everyday use. I would suggest using the exact wording “not suitable”. While the IRS does not define “not suitable” in their instructions, that is the requirement.
