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gargus52
New Member

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

 
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7 Replies
HelenaC
New Member

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

Yes, you can claim the entire amount of the tools if they were purchased for a job you held when you purchased them.  The tools are considered a job related expense and are subject to the 2% rule (What is the 2% rule? ).

Where do I enter job-related employee expenses? (Form 2106) 

Note: Your refund may not be affected by the tools expense if your standard deduction is greater than your itemized deductions. 

  • The standard tax deduction is a flat amount that the tax system lets you deduct, no questions asked. 
  • For 2016, see the screenshot below of the IRS 2016 Standard Deduction Tables to find your standard deduction.
  • After adding up your itemized deductions, you need to make sure the total is greater than the standard deduction for your filing status. If it’s not, then you will actually pay more in tax if you itemize.

Additional information:

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

Ok if if my expenses were higher is it likely to get audited?

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

No but if you are a W-2 employee they are no longer deductible. 

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

@Tonydinero916 You have posted to an old thread; we do not know if you are self-employed or if you are a W-2 employee.   No one can answer you since your question is unclear.   What expenses?    If you are an independent contractor your business expenses go on a Schedule C.   If you are a W-2 employee you cannot deduct job-related expenses on a federal tax return.   If you provide some details we can provide better help.

**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.**
Hal_Al
Level 15

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

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

bmtrice
New Member

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

Can I deduct my tools if I am an W2 employee who is also 1099'd for part of my income?  

Hal_Al
Level 15

I'm a mechanic and spent 5165.37 on tools last year can I deduct that

Q. Can I deduct my tools if I am an W2 employee who is also 1099'd for part of my income?  

A.  Yes, if the 1099 payer is a different company than the W-2 payer. 

You would have to prorate the expense. For example, if you use the tool on both jobs, and your 1099 is 10% of your income, you only deduct 10% of the tool cost on your Schedule C. 

 

 

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