Frequently Asked Questions

Your department will be able to inform you if any clothing provided is required to be worn.

The IRS requires us to tax all items given to an employee unless there is a defined exclusion.  Clothing must meet the IRS rules for exclusion to be treated as non-taxable. 

Your department will be able to help answer if clothing issued will be treated as a taxable fringe benefit.

Clothing allowances are always taxable when paid through your payroll check.  There is no exemption even if the money is spent on items that meet the excludable requirements.

Examples of taxable clothing includes shirts (logo or plain polo, tee, button down), pants, shorts, athletic clothing, shoes, boots, jackets, hats, etc. 

Examples of University wide non-taxable clothing include lab coats, scrubs (standard top and bottom only), and regalia.   

All instances of providing clothing to employees must be taxed unless an exclusion is requested by the unit and confirmed by Tax Office. Final determination of an exclusion by Tax Office will be made once a completed Determination of Taxability Form is received. The determination is applicable indefinitely unless the circumstances (items or usage) have changed. For example, a determination of taxability issued in the past excluding taxation of medical scrubs, would apply to new purchases/rentals of medical scrubs in the future.

The requirements review is performed on a case by case basis.  An example is a police officer or firefighter uniform; it is not adaptable for everyday wear.   However, a police detective's suit jacket and related clothing, since they are suitable for everyday wear, do not qualify as a non-taxable benefit and are taxable to the employee. 

The fair market value of the clothing will be added as income once the De Minimus threshold is met of $100 per year and will be included in your next available payroll check.  This will allow for the appropriate taxes to be withheld in accordance with IRS regulations.

When the university provides items to employees where no cost, or discounted cost, was incurred, the employee still receives value. FMV can be determined by the retail cost to the employee to purchase same item. Where this is not readily determinable, consult Tax Office for assistance.

In general, fair market value is determined on the basis of all the facts and circumstances. Specifically, the fair market value of a fringe benefit is the amount that an individual would have to pay for the particular fringe benefit.  In instances where the university purchases an item of clothing from a vendor, the cost incurred to purchase the item is the FMV.

Contact tax@osu.edu with any questions.

 A Determination of Taxability Form should be submitted by the unit providing the article of clothing.  Each unit will be responsible for identifying and designating the individuals responsible for submitting the forms. 

The Determination of Taxabiliy Form can be found on B&F website under policies and forms.