Yes, you may be able to report this purchase as an Employee job-related deduction. See the instructions below on how to enter this in TurboTax.
Note that, as a cash-basis taxpayer, you have the benefit of deducting an expense that was paid on credit because you are obligated to pay off the associated debt.
In general, you may report as an expense
up to $2,500 spent on one item. However, due to the price of this toolbox, you should report this as an
Asset for Depreciation, rather than a one-time purchase. You'll find that option in the
Job-Related Expenses section (see below).
To enter these
expenses in TurboTax, use the Search box at the right side of the TurboTax header. Type in "2106" (the form used to report these expenses) and hit Enter. Click on "jump to 2106" to go to the start of this section.
Or follow these steps:
- Select Federal
Taxes
- Select Deductions
& Credits,
and in the next screen, click "I'll choose what I work on."
- Scroll down the Deductions
& Credits screen until you see the Employment Expenses group.
- Click on the Start/Update
button next to the Job-Related Expenses category.
- Follow the prompts.
Employee job-related expenses are considered Miscellaneous Expenses; total Miscellaneous Expenses must exceed 2 percent of your adjusted gross income (AGI) in order to be included on your tax return. TurboTax will help
you determine if your expenses can be reported and if your total Miscellaneous
Expenses meet the threshold to be deductible.
If these tools were used in your self-employed business (Schedule C), you may report the cost under Assets/Depreciation for your business.
[revised 2/3/17 for clarity]
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