Tax Deductions for Buying Tools for Work
A tax deduction or tax write-off is an expense that the IRS allows a taxpayer to subtract from his taxable income when calculating the amount of income tax he owes. Tax deductions are available for certain job-related expenses such as tools for work purposes.
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Tax Deduction for Tools
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According to the IRS, the cost of tools and supplies that a worker purchases for a job that are expected to wear out within a year is a tax deductible unreimbursed employee expense. Similarly, if a business buys tools that are expected to last less than a year, the cost of the tools are a tax deductible business expense.
Deduction for Equipment that Lasts Longer than a Year
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While small, inexpensive supplies and hand tools might wear out in less than a year, many tools and larger pieces of equipment and machinery last longer than a year. For example, if a business owner buys a truck to use in his business, he could not claim it as a tool and deduct its entire cost in one year. The IRS says that for equipment that lasts longer than a year, the cost of the equipment can be recouped over the course of several years by taking depreciation deductions based on the cost of the equipment.
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Work Clothes and Protective Gear
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Some workers have to buy work clothing and protective gear such as safety boots, goggles or hardhats. According to the IRS, the cost of protective gear required for a job is a tax deductible expense. In addition, the cost of required work clothes that are not suitable for daily wear is tax deductible. Clothing not suitable for everyday wear includes items such as uniforms worn by law enforcement, medical workers and firemen. Clothes such as suits, jeans and overalls are not deductible because they are suitable for nonwork use.
Considerations
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The tax deductions that employees can take for tools, protective clothing, work clothing and other unreimbursed employee expenses are subject to a 2 percent income limitation. According to the IRS, workers can only deduct expenses subject to the limitation in the amount that they exceed 2 percent of the worker's adjusted gross income.
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