Can I still claim tool bills for tools and equipment I need for work if I’m on a w2

[mattford74]

I am a mechanic and have to constantly buy tools about $10000 year am I still able to claim them as the company I work for now has us on a w2 opposed to the previous companies had me on a 1099

[rjs]

No, you cannot deduct the cost of your tools. For 2018 through 2025 there is no tax deduction for job-related expenses for a W-2 employee.

[xmasbaby0]

Sorry---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 live in 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

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/employees-deduct-...

[mattford74]

I’m in California but that’s unfortunate for me thanks for the answer

[xmasbaby0]

CA is one of the states that might let you enter the tool expense.  Enter it in the federal return and it will flow to your CA return.

[Opus 17]

Be aware that if you report the tools on your tax return, the depreciation you claim reduces their cost basis, so that if you ever sell them, you could have a taxable event.  If you could get a partial state deduction but no federal deduction, you may want to consider if it is worth doing at all.

Also, some states have rules about when it is allowed or not allowed, for an employer to require employees to purchase their own equipment.  You could look into this if you think it might apply to you. 

[TomD8]

@mattford74 --

As a W-2 employee:

You can deduct job-related expenses on your California state return to the extent that they exceed 2% of your federal AGI.

You cannot deduct those expenses on your federal return.