Hal_Al
Level 15

Deductions & credits

Starting in 2018, employees  (W-2 recipients) are no longer able to deduct any job expenses, including tools.  

 

 Even in the "old days" , job expenses were only a misc. itemized deduction.  You only got to deduct that portion of  your misc. itemized deductions that exceeded 2% of your AGI,  and then only if your total  itemized deductions exceeded the standard deduction (which was doubled under the 2018 tax law. .  (2% rule explained: https://ttlc.intuit.com/questions/2902781-what-is-the-2-rule ).

 

Self employed mechanics can still deduct tools, except those that must be depreciated*, on Schedule C.  The deduction is not subject to either the 2% rule or itemizing. 

 

There's always more risk of an audit with bigger expenses.  The risk is small and easily supported with receipts. 

 

*https://www.hrblock.com/tax-center/filing/adjustments-and-deductions/are-work-clothes-and-tools-tax-...

https://www.thebalance.com/a-beginner-s-guide-to-section-179-deductions-5218624