Can I deduct tools purchased for work as a AC technician?

clearc3 · ‎March 31, 2026

I purchased tools to be used in my line of work. Are they tax deductible?

xmasbaby0

If you are self-employed----working as an independent contractor--- your expenses go on your Schedule C.

If you are a W-2 employee, no, you cannot deduct job-related expenses on a federal tax return.

W-2 employees cannot deduct job-related expenses on a federal return. Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond. Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

If you are preparing a return for a state that lets you deduct job-related expenses, the information will flow from your federal return to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses

**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.**

MindyB

It depends on your employment status. If you are an independent contractor or a sole proprietor receiving a 1099, you are considered a business owner. In this case, you can generally deduct the full cost of tools used for your AC work as ordinary and necessary business expenses. For smaller hand tools, you typically deduct the cost in the year of purchase, while larger, expensive equipment might be depreciated over time or fully expensed immediately using Section 179.

However if you are a W-2 employee, under current federal tax law, unreimbursed employee expenses are no longer deductible on your federal return. This remains true even if your employer requires you to provide your own tools as a condition of your employment. There are a few exceptions, such as certain military reservists or fee-basis government officials.

You should check the specific tax laws in your state. Some states, such as California, New York, and Pennsylvania, do not follow the federal guidelines and still allow employees to deduct unreimbursed work expenses on their state income tax returns.

Here is an article you may find helpful: Are Unreimbursed Employee Expenses Deductible?