I spent over 2000$ in personal tools for work, I was wondering if I could get a tax deduction on that.

Forum|Forum|6 years ago
February 1, 2020
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xmasbaby0

Level 15

If you are a W-2 employee your job-related expenses are not deductible on your federal return. Some state are different.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

bwergeles

Level 7

You may be able to deduct the expense depending on what type of business or "work" the tools are used for.

If you are an employee, who receives a W-2, and you purchased the tools as part of your job, then those types of expenses are considered "Unreimbursed Employee Business Expenses." Unfortunately, Unreimbursed Employee Business Expenses are no longer deductible as an Itemized Deduction. Please see this IRS article for more information.

If you are self-employed and you purchased the tools for your business, this type of expense is considered a business expense. You would be allowed to deduct your business expenses on Schedule C of your tax return.

As xmasbaby0 stated above, some states still allow a deduction for unreimbursed employee business expenses. If the tools are considered an unreimbursed employee business expense, you should still enter them in TurboTax (even though you cannot take a deduction on your federal return) to see if they are deductible on your state return. TurboTax will help you determine if the expenses are deductible. Here are the steps:

Log into TurboTax and click on any topic to continue
Click on Deductions & Credits from the menu on the left-hand side
Scroll down to Employment Expenses and click Show More
Click Start to the right of Job Expenses for W-2 Income and answer the questions