If you work for someone else (W2 employee), you can include the cost of your tools in the Employment Expense section of Turbo Tax. You can take a Section 179 deduction for depreciable assets you have purchased. You should not use a Schedule C because you are not considered to be self-employed.
Your deductions are considered employee business deductions. Employee business deductions are part of the Miscellaneous Itemized Deductions category. This category must exceed 2% of your adjusted gross income before they can be included in your itemized deductions. Turbo Tax will do the 2% calculation for you. This means if your adjusted gross income is $30,000, and your Miscellaneous Itemized Deductions are $750, $150 will be included in your itemized deductions.
To enter these expenses as employment expenses:
Select Federal Taxes
Select Deductions and Credits
Select Show More at Employment Expenses
Select Start at Job Related Expenses
