deductions for tools work related

[ourfamily123]

My husbands employer gave him a check written as a lump sum with taxes taken out for him to buy tools needed for the job. Check was for $1000.00 with taxes taken out  he has $654 to spend on tools. can we claim this on taxes for work related? if so how and where?

if not how  or where do we enter this lump sum under?

[VolvoGirl]

It should be included in his W2 from work.  If you're not sure ask the employer if it is on the W2.   Sorry you can no longer deduct employee expenses as an itemized deduction.  

[ourfamily123]

so its considered income?

[DavidD66 · Accepted solution]

Yes, your husband's employer is treating the $1,000 payment as wages, subject to income and employment tax, as opposed to reimbursing your husband for work related tools he bought.  The former is subject to income and employment tax, that later would not have been taxable income.  If the payment was made in 2021 it should have been included on his 2021 W-2.  If it was made in 2022 it will be included in Wages on 2022 W-2.

[ourfamily123]

Clarify we cant deduct for tools bought for work then?

[LenaH]

No, his tools for work are not deductible on the federal level, but might be deductible in your state as a deduction (depending on where you live). Job-related expenses for employees are no longer deductible on most people’s federal return in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress passed and the President signed into law on December 22, 2017. However, the job-related expenses deduction is still available to people who work in one of these specific professions or situations:

• Armed Forces reservist
• Qualified performing artist
• Fee-basis state or local government official
• You're disabled and have impairment-related expenses

Enter your expenses and we’ll figure out if you can deduct them depending on where you live. Expenses that qualify for this deduction are those the IRS considers "ordinary and necessary" for work, like uniforms, tools, union dues, licenses, and travel between job sites.

Here's how to enter your job-related expenses in TurboTax (if you can deduct at the state level):

1. Open (continue) your return in TurboTax if it's not already open
2. In TurboTax, search for 2106 and then select the Jump to link in the search results
3. Answer Yes on the Do you have any expenses from one of these professions or situations? screen
4. Enter your occupation on the next screen, then select Continue
   • If you land on the Job-Related Expenses Summary screen, you can select Add Another Occupation (to add another 2106), Edit (for an existing 2106), or Delete
5. Answer the questions about your occupation and follow the onscreen instructions to enter your employee expenses

@ourfamily123