W-2 Job/Employee
If you
are an employee and receive a W-2, you can deduct unreimbursed expenses, such as tools,
as job expenses, but you must be able to itemize your deductions. Even
then, only the amount above 2% of your adjusted gross income is deductible.
You
can add those expenses by following the directions below:
- Go
to Federal Taxes
- Select Deductions
and Credits
- Select I'll choose
what I work on if the option is given
- Scroll to the heading Employment
Expenses
- Select Start next to Job Related
Expenses for W-2 income. You
will then walk through the interview to enter those expenses required as
part of your employment.
Self-Employed reporting on Schedule C
This would apply if you received a 1099-MISC or worked for yourself.
To
Enter Your Tool Expenses:
- Select Federal Taxes at the top of the screen
- Choose Self-Employment Income Expenses
- Select Start or Edit on the Your Work Summary screen
- Scroll down to Expenses
- Select Add Expenses for this work
- Continue through the interview to enter your tool expenses
