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

Forum|Forum|1 year ago
July 15, 2024
3 replies
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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

TurboTax Online

rjs

Employee

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

Employee

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-job-related-expenses/L5b07gqy7_US_en_US?uid=lwhvwyxj

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

mattford74Author

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

Opus 17

Employee

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

Employee

@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.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.