1st attending job -- clothing bonus/allowance?

[EUA]

Mmmm yeah, has anyone heard of this? I received a job offer, that I will most likely take, and the head of the group said that I will get $ X upon signing the letter of intent and another lump sum when I start in order to assemble a professional wardrobe. He says it's pretty standard practice in the law arena and feels it appropriate in medicine as well. Note, it's not like this man is sporting custom three piece suits every day -- he's pretty average, clothes-wise -- and it's not like I show up in anything less than business casual when I go there (I've known him for years). So, is this weird? Should I just stop overanalyzing and go buy things at J. Crew and Banana Republic that are (gasp!) NOT on the sale rack?

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[Winged Scapula]

I've never heard of it in medicine, but hey...there's a first for everything. I could see in it Plastics and other high-rollin' specialties, but for the most part in everything else as long as you're neat and clean, do you really need a Paul Smith suit?

I wouldn't take it personally, but frankly if they are offering the money and you already have some nice clothes, I might be tempted to turn it down if my contract deems it a loan. I'd prefer not to owe anyone anymore money than I have to (albeit many times these loans are forgiven after a certain period of time).

PS...never pay retail. Its always a horrible mark-up...ESPECIALLY in men's clothes because most guys aren't exactly wearing cutting edge trends. Men's fashions change slowly, so wait for things on sale.

 

[edmadison]

I've never heard of it in medicine

I've never heard of it in law, either -- buy maybe I got ripped off when I joined my firm.

I do know where you can get a clothing allowance. Join the Army and they'll give you $400.00.

Ed

 

[Meatwad]

Nice deal. Tell them you also need a plane ticket to London, because you are going to hit up Henry Poole & Co on Savile Row for a nice custom job. And you are going to need a watch from World Première Watchmaking.

 

[f_w]

Take it if it's pre-tax.

(don't know how it works with a 'clothing allowance', but things like moving expenses are not taxed as personal income for you if the employer pays them directly. if they consider professional clothing a uniform and pay the bill for you, it might be treated similarly.)

 

[drtx]

Defintely stop overanalyzing and go on a spree!!!!!!!! That's just the chic in me.....

Where did you say you were going to work again?

 

[EUA]

Take it if it's pre-tax.

(don't know how it works with a 'clothing allowance', but things like moving expenses are not taxed as personal income for you if the employer pays them directly. if they consider professional clothing a uniform and pay the bill for you, it might be treated similarly.)

Hmmm. Good question, if it's pre-tax. It was just worded as a stipend to buy new clothes, and a mighty generous one at that. I'm like, does that include Chanel bags? Woo! Not sure how I could swing that to get it untaxed.

 

[f_w]

Hmmm. Good question, if it's pre-tax. It was just worded as a stipend to buy new clothes, and a mighty generous one at that. I'm like, does that include Chanel bags? Woo! Not sure how I could swing that to get it untaxed.

Talk to your CPA.

In my case, there was no wardrobe allowance. There was however moving expense reimbursement. But that only worked out to be pre-tax if the service was billed directly to the practice by the moving company. The out of pocket moving expenses (e.g. road tolls, hotel etc) showed up on my W2 (but ended up being tax-deductible on my 1040 at the end of the year).

 

[velo]

I've never heard of that and never imagined it would be offered, but that is awesome. I like nice clothes but am pretty frugal about spending money on that kind of stuff. If I had the excuse that this was "free money" just for that though....oooohhh man.....

go nuts and have fun!

 

[NinerNiner999]

If it is specified in your contract that you are recieiving a "stipend" but it is not specified how you are supposed to spend that stipend, it is taxable income. If your contract states that you are required to wear professional dress, and details what this means, then anything you spend from your "stipend" can be deducted for business expenses as long as you by the professional attire mentioned in your contract.