Tools Required For Employment

[tf6217]

My son is an HVAC tech who is responsible for purchasing his own tools. He recently asked me to purchase a tool for a Christmas present to him. Because I made the purchase, does that mean he cannot claim the deduction on his taxes? Thanks.

[xmasbaby0 · Accepted solution]

Is your son a W-2 employee or is he an independent contractor?   If he gets a W-2 for his job he cannot deduct anything for the tools on his federal tax return.   Job-related deductions were eliminated from federal tax returns when the tax laws changed for 2018 and beyond.   If he is an independent contractor he can enter his tools on his schedule C with his other business expenses.  Does he get a W-2----or does he get a 1099NEC?

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.

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

[tf6217]

Thanks so much for the quick reply. Unfortunately he does receive a W2 from his employer ☹ So it appears the question is no longer relevant.

[Opus 17]

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@tf6217 wrote:

Thanks so much for the quick reply. Unfortunately he does receive a W2 from his employer ☹ So it appears the question is no longer relevant.

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He may want to check the labor laws in his state, in some cases, it may not be legal for an employer to require an employee to purchase their own equipment as that effectively reduces the employee's income.  On the other hand, there may be long-term benefits to owning his own equipment.

For independent contractors (and W-2 employees starting in 2026) it is possible to declare gifted equipment on your tax return.  However this is subject to certain rules.  Equipment items under $2500 can be treated as expenses, but only if he paid for them.   If he received the items as a gift, he can't expense them, but he can list them as a business asset for depreciation, using the givers' original cost or the present fair market value, whichever is lower, as the basis for depreciation.  Businesses must keep track of their assets, and there are sometimes tax consequences when an asset is sold or otherwise disposed of.  This is why expensing items less than $2500 is often preferred, but that is not allowable for a gifted item.  

[TomD8]

@Opus 17  wrote:  "In some cases, it may not be legal for an employer to require an employee to purchase their own equipment as that effectively reduces the employee's income."

I think this is particularly the case when the employee's effective income is reduced below minimum wage.