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.
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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]
