goofy600
New Member

I am a mechanic responsible for buying my own tools at my expense where do I write off these items as expenses?

 
LindaA
Expert Alumni

Deductions & credits

If you are an employee and you purchased tools to use at work, you may be able to deduct the cost of your tools as a job-related expense. You'll need to itemize deductions (Schedule A) to claim your job-related expenses. The cost of your tools won't be fully deductible as it will be subject to the 2% rule. Note that if you are self-employed you may deduct the cost of tools you use for work as a business expense.


To enter your job-related tool expenses in TurboTax:

  • Continue working on your return in TurboTax Online. (If your return isn't open, you'll need to sign in, and click Take me to my return.)
  • Click Tax Tools (lower left side of your screen).
  • Select Tools.
  • In the pop-up window, select Topic Search.
  • In the I'm looking for: box, type 2106.
  • In the results box, highlight 2106, then click GO.
  • You'll land on the page that says Tell us about the occupation you have expenses for. Enter your occupation (in your case, mechanic) and click Continue
  • Continue to answer the questions in this section. When asked, Did you buy or own any items for use on your job?, select Yes, I bought or owned items in 20xx that I used for my job, then click Continue.
  • Tell Us About the Item You Bought or Owned. Select Tools, Machinery, Equipment, Furniture, then click Continue. (Click the screenshot below for reference.)
  • Continue through the interview. TurboTax will ask questions about the tools that you bought for your job and calculate your tax deduction if any.

Note: If using the TurboTax CD/Download software, you'll use the Find function and the "Jump to" link (instead of "Tax Tools") to search for the topic.


Can employees deduct any job-related expenses? https://ttlc.intuit.com/replies/3300622

[Edited 02.26.2018 I 07:19PM PST]

Deductions & credits

What if you purchased the tools with a credit account. Do you claim the full cost of the tools or just the amount that your already paid off

KarenJ2
Expert Alumni

Deductions & credits

Expenses purchased with a credit card are deducted when purchased.  You do not wait until they are paid off.

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Deductions & credits

I have the same issue. I went the form it said to and you cannot input them because it now requires it to be for the armed forces, or if you are disabled. There are requirements and because of that it it is not considered an expense. 

JamesG1
Expert Alumni

Deductions & credits

For tax year 2018 and on, unreimbursed employee expenses are no longer deductible on the Federal tax return. 

 

See here under Overview.

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Deductions & credits

so if I understand correctly , for the tax year 2022, any apprentice mechanic hired on a w-2 , who was required to buy tools for work , is no longer allowed to claim expenses for the tools that were bought  in 2022? or itemize those expenses for the tools ? and does this equally applies to the following tax year 2023 and 2024 ?

Deductions & credits

 

These items are no longer deductible on your federal return if you are a waged employee getting a W-2.

 

Employee job related expenses

 

However, if your state allows you to itemize, you may be able to claim a deduction on the state return. 

 

Enter all of your information in the federal section to ensure it gets pulled into your state return. 

  1. Go to the Federal section of the program
  2. Go to Deductions & Credits 
  3. Under All breaks, select Employment Expenses 
  4. Select Job Expenses for W-2 Income 
  5. On the next page, you should see a page titled Review your job-related expenses info.
  6. Review your input if needed.
DawnC
Employee Tax Expert

Deductions & credits

Correct.  That deduction (unreimbursed employee business expenses) has been suspended through the tax year 2025.   @2-effective 

 

Self-employed taxpayers can deduct their business expenses, but employees (those that receive a W-2) cannot deduct expenses related to that work.  

 

Can Employees Deduct Job-Related Expenses?  - There are 4 occupations that are exempt from this rule - click the link for more details.  

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Cynthiad66
Expert Alumni

Deductions & credits

The deduction for job related expenses has been suspended through 2025.  However, some states still allow the deduction.  You should still enter the deduction as explained earlier and if your state is one of those states, you could get the state deduction.

 

The Tax Cuts and Jobs Act (TJCA) was signed into law in 2017. 

These are work-related expenses you paid out of your own pocket and include travel, transportation, meals, union and professional dues, business liability insurance, depreciation on office equipment, work-related education, home office expenses, costs of looking for a new job, legal fees, work clothes, and uniforms. All of these are gone. Your best recourse is to ask your employer to reimburse you for these expenses. The reimbursement will be tax-free. You could also ask for a pay raise, but that would be taxable.

@2-effective

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