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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.
Additional information:
Ok if if my expenses were higher is it likely to get audited?
No but if you are a W-2 employee they are no longer deductible.
@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.
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.thebalance.com/a-beginner-s-guide-to-section-179-deductions-5218624
Can I deduct my tools if I am an W2 employee who is also 1099'd for part of my income?
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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