Income Tax: Casual clothing is not considered typical work attire

The costs of “casual clothing” cannot be claimed as business expenses for tax purposes. This is confirmed by a ruling of the Federal Fiscal Court (BFH) dated March 16, 2022. This rule applies even if the clothing in question is used exclusively for professional purposes. Your tax advisor in Düsseldorf and Oberhausen has summarized the difference between casual clothing and work attire for you.

In the case of a self-employed funeral speaker, the BFH assumes that expenses for the purchase, alteration, repair, and cleaning of black clothing cannot be claimed as business expenses. Furthermore, there is no need to clarify the extent of the actual private use of the clothing.

A business expense deduction for in-kind benefits may be considered in cases where it relates to expenses for the clothing of employed funeral speakers. Even for close relatives, this is only considered if a clear and unambiguous agreement regarding the provision of the clothing was made in the employment contract.

The Case of the Funeral Speaker

A self-employed funeral speaker and bereavement counselor filed a lawsuit covering the years 2008 through 2010. He had employed his wife as a funeral speaker starting in September 2008. In his lawsuit, he argued that wearing black clothing is culturally and historically expected of funeral speakers. In this case, therefore, the black clothing constitutes typical work attire as defined by law.

He justified this classification by arguing that clothing typical of a profession should be derived not from its nature but from its inevitable intended use and the function associated with that purpose. However, the Senate’s ruling was unfavorable. It decided that while the legal provision is indeed applicable within the framework of the business expense deduction, there was another sticking point. “Typical work attire,” as defined by the standard, encompasses only garments that meet certain other requirements. The garments must, objectively speaking, be intended and suitable almost exclusively for professional use due to their nature. Furthermore, they must be necessary for the profession and, for example, be intended exclusively for professional use as a uniform, through permanently affixed company logos, or due to their protective function.

What counts as work clothing for tax purposes?

Clothing that can also be used for personal purposes is generally not recognized as work clothing. Uniforms, protective clothing, or the official attire of clergy are accepted as income-related expenses. You can claim 110 euros per year for dry-cleaning costs of work clothing. Many tax offices accept this amount without requiring proof.

If clothing is necessary due to the nature of the profession, it is also tax-deductible. This includes, for example, uniforms, a white coat in healthcare and nursing professions, the official attire of clergy, prosecutors, or judges, or the clothing of chimney sweeps. Other purchase costs are not deductible, as the purchase of everyday clothing is considered a typical living expense. This is not tax-deductible.

Exceptions in cases of high occupational wear and tear

In cases where professional wear and tear is particularly high, exceptions apply. This is because wear and tear in these cases precludes private use. Case law permits the deduction of everyday clothing in such instances.

Case law permits the deduction of income-related expenses for the following clothing, for example:

• Work shirts and pants, sweaters, anoraks, tactical suits, tracksuits with a police emblem
• Dark blue suits and business attire provided by an airline to its employees, even if only a removable emblem indicates the employer (but not socks or clothing that is not uniform-like)
• Sportswear for official participation in sports (physical education teachers, police, fire department, armed forces)

However, no deduction for income-related expenses is available, for example, for:

• Shoes, socks, and functional underwear worn with a uniform
• "Regular" white pants, white shirts, T-shirts, socks, and shoes worn by a doctor
• Expenses for eyeglasses and replacement eyeglasses; including computer glasses
• Evening gowns and traditional costumes for a singer or instrumentalist
• Clothing for a fashion model,
• ski clothing for part-time ski instructors
• Shoes for mail carriers

Your Tax Advisor in Düsseldorf and Oberhausen

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