Are Scrubs Tax Deductible? What You Need to Know

When filing taxes for the first time after starting a career in healthcare, many doctors, nurses, and other professionals wonder if the money they spent on scrubs is tax deductible. The short answer is yes, in most cases in Australia, you can deduct the cost of buying your scrubs from your taxable income! This is great news for healthcare workers who invest a lot of money into their work uniforms.

Here, we’ll discuss the specific situations in which you can deduct your scrubs on your taxes, how to make sure you meet the eligibility requirements, and how to go about deducing scrubs at tax time. We’ll also talk a bit about other items you may be able to deduct, and what things will have to be left off your tax return.

Are Scrubs Tax Deductible?

Yes! Australian tax laws allow certain tax deductions relating to work uniforms if they meet the government’s criteria. The ATO (Australian Taxation Office) sets out rules for what work-related expenses can be deducted, and we’ve broken that down here to help healthcare professionals understand how that relates to you.

In general, occupation-specific clothing and protective equipment are tax deductible. While you may wear items of clothing other than scrubs at work, like socks or long-sleeved T-shirts under your scrub top, those items don’t qualify as clothing deductions because they can be worn anywhere. But since scrubs are distinctive uniforms for healthcare workers, they can be deducted at tax time. You can even deduct bills related to having your scrubs cleaned, such as dry cleaning expenses!

Criteria for Deducting Scrubs

At the end of each financial year, taxpayers around the country will review all of their income and expenses throughout the year as they prepare their tax returns. For some lucky professionals, work-related clothing expenses can be deducted from taxable income, reducing your income tax bill.

However, the ATO has very specific criteria for what can be deducted, so it’s important to familiarize yourself with those rules before filing your taxes.

The general rule is that compulsory work uniforms, including occupation-specific and protective clothing, can be deducted, but non-compulsory uniforms and conventional clothing cannot – even if that conventional clothing is worn at work.

When determining if your work uniform qualifies as a tax deduction, these are the criteria that must be met:

1. The clothing must identify you as a specific type of professional. Since scrubs identify medical professionals, they meet this criteria!
2. If it is protective clothing, it must be designed specifically to provide protection and actually function as a protective item. Items like non-slip nursing shoes, steel-capped boots, and safety glasses qualify here.
3. The clothing must be part of a compulsory work uniform. If your employer requires you to wear scrubs, those can be deducted. But other parts of your clothing that are not specifically required, like socks and underclothes, are not deductible in most cases.

How to Claim Scrubs on Taxes

In order to deduct expenses for your scrubs and other qualified clothing, you need to make sure to keep detailed records throughout the year of everything you spent. The ATO can require proof of what you spent on the deducted items, so be sure to keep receipts.

Other Tax Deductible Uniform Expenses

Medical professionals will be happy to know that in addition to deducting the costs of purchasing their scrubs, you can also deduct expenses related to having them professionally cleaned and cared for! This includes:

• Laundry expenses
• Dry cleaning
• Ironing

Additionally, if any part of a non-compulsory uniform is encouraged by the employer and registered with the ATO’s Register of Approved Occupational Clothing, the cost of that item can be deducted as well. Your employer may register certain articles like lab coats with the company logo.

You can also deduct certain other expenses, like certain overtime meals, your annual registration fees, and equipment like stethoscopes, so keep those receipts, too!

What You Can't Deduct in Taxes

There are a number of items that cannot be deducted, including (but not limited to):

• Socks, underwear, and underclothes (even if you only bought that white shirt to wear under your scrubs, it can’t be deducted)
• Clothing you bought to comply with your workplace’s dress code, even if it has the employer’s logo(unless it is on the Register of Approved Occupational Clothing)
• Non-compulsory work uniform items
• Laundry expenses that were reimbursed by your employer. Laundry claims are only valid if you paid for it and did not receive a reimbursement.
• Uniform items purchased by or reimbursed by your employer

Conclusion

As a medical professional, the work you do is difficult and often complicated. Thankfully, your taxes don’t have to be. Hopefully, our guide and tax tips will help you get the deductions you’re entitled to as you navigate the filing process. We always recommend reaching out to a professional tax agent if you have specific questions about your individual situation, tax refund, or income tax.

 

Author: Carolyn Cumper's career spans from being a Patrol Officer in Rhodesia to a Paediatric Nurse in the UK, and later a Deputy Hospice Manager in Australia. Her diverse journey includes roles in law enforcement, healthcare, and business, culminating in her significant contributions to Medshop.