I needed some tools for my job and the company I work for put the tools on an account they had and said they would just deduct the cost of the tools from my paycheck should this deduction come off my gross wages or my net wages?
2006-06-06 05:37:28 · 5 answers · asked by symbawyo69 2 in Business & Finance ➔ Taxes ➔ United States
social security, federal and state taxes, child support, garnishments. the cost of your tools will come out of your gross wages
2006-06-17 03:48:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Tool, uniforms and other business supplies required for your job - but no provided for by your employer may be deducted on Form 1040, Schedule A as a 2% miscellaneous itemized deduction. The cost of the tools, etc must be greater than 2% of your adjusted gross income for the year.
See IRS Form 2106 and accompanying instructions for more information.
--
Any tax advice included in this written communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed by any governmental taxing authority or agency.
2006-06-11 18:02:12 · answer #2 · answered by TaxGeek 2 · 0⤊ 0⤋
Off the net since you are actually purchasing goods through them. Your total income is still taxable. However, don't forget to take the cost into account as a business expense when you do your personal taxes
2006-06-06 12:41:16 · answer #3 · answered by sam21462 5 · 0⤊ 0⤋
It can't possibly come of your net wages, now can it?
Don't forget this at tax time.
I don't quite get why they're charging you for the tools, but have your name engraved on them and take them with you when you go.
2006-06-06 12:41:43 · answer #4 · answered by bequalming 5 · 0⤊ 0⤋
It should come from your net pay. It is the same as if you went to the store and bought them directly, they are just handling it directly.
2006-06-06 12:41:02 · answer #5 · answered by davidmi711 7 · 0⤊ 0⤋