Deducting the cost of Work Clothes and Uniforms

Qualified uniform expenses are the cost and upkeep of uniforms and certain articles that are:

• Specifically required as a condition of employment, and
• Not adaptable to general use as regular clothing

The deduction is also allowed for "Uniforms required by your employer that are not suitable for ordinary wear" as well as "protective clothing required in your work."

This includes protective clothing such as safety shoes, boots, safety glasses, hard hats, and work gloves. Taxpayers should look into this deduction if their occupation is a carpenter, cement worker, chemical worker, electrician, fishing boat crew member, machinist, oil field worker, pipe fitter, steamfitter, or truck driver.

Self-Employment Income this year? Here's how to report it.

Schedule C is the form to use when reporting Self-Employment and business income.

All income pertaining to the business is reported. Expenses are subtracted from income to determine if there is a gain (profit) or loss. The net profit or loss is entered on line 12 of Form 1040. If a taxpayer owns and operates more than one business activity, file a separate Schedule C for each business. Combine the profits and losses on Form 1040 line 12 if there is more than one Schedule C.

If net earnings from self-employment are $400 or more, the taxpayer must file an income tax return. If net earnings from are less than $400, the taxpayer may still have to file a return and would still report the net earnings.

Are you really self-employed?

Many businesses mislabel their employees as "self-employed independent contractors" to get Social Security, Medicare, Unemployment, and income tax relief. Generally:

• an employee is anyone who performs services if the employer can control what will be done and how it will be done.
• a person is an independent contractor if the employer/supervisor has the right to control or direct only the result of the work and not the means and methods of accomplishing the result.

If you think your employer should treat you as an employee instead of a contractor, file a Form SS-8. If the IRS agrees, they will send to you a determination letter stating you are an employee of that organization. You can then report your wages on Form 8919 and you will only be responsible for your share of Social Security and Medicare taxes. The wages are carried over to line 7 of Form 1040 and the Social Security and Medicare taxes are reported on line 57 of Form 1040.

The IRS has general guidelines for more information.