Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 26, 2022 10:54:52 AM

I am a mechanic and was told I could write off the interest on the loans for the tools I have to buy for work. Does anyone know how to do this. I am not self employed

0 2 1415
2 Replies
Level 15
Feb 26, 2022 11:02:04 AM

Sorry but someone misinformed you.

 

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.

 

 

 

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

Employee Tax Expert
Feb 26, 2022 11:07:28 AM

If you are not self-employed, you cannot deduct interest expense on the tools you have to buy for work.

 

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, job-related expenses might be deductible in your state even if they’re not deductible on your federal return.

 

To enter your job-related expenses in TurboTax to see if they are deductible on your state return, please follow the instructions below:

  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