My husband started working for the City of CC and of course being a heavy equipment mechanic one must have their own tools. He has purchased several items adding up to almost $2,000. We have saved our receipts. Can these be considered tax deductible since they are used for his job?
Additional Info: He is the only employed person in the household, and we usually file Married filing Jointly-. We are homeowners but do not have mortgage payments.
Thanks!
2007-11-16 19:23:27 · 9 answers · asked by Nan 1 in Business & Finance ➔ Taxes ➔ United States
Yes they are deductible, but it probably won't help you. Tools are an employee business expense that are reported on form 2106 which then carries to Schedule A itemized deductions. Employee business expenses must exceed 2% of you adjusted gross income before they start to count. Add all your itemized deductions up and if it exceeds your standard deduction it will lower your tax.
Since you state you don't have a mortgage and that is most peoples largest itimezed deduction it is unlikely your itimized deductions will be larger than your standard deduction.
2007-11-17 01:01:46 · answer #1 · answered by Charlie & Angie G 4 · 2⤊ 0⤋
The tools are unreimbursed employee expenses. He would attach Form 2106 to his tax return showing these expenses, and then transfer the amount to Schedule A.
Since you do not have home mortgage interest to deduct, your total itemization may not be more than $10,700. In this case the standard deduction is better for you than using Schedule A.
Keep your receipts however. If in the next few years you do have other expenses to bring you over the threshold to itemize, you may be able to recover part of the cost of the tools by entering them on Form 2106 as depreciable assets.
2007-11-17 02:55:56 · answer #2 · answered by ninasgramma 7 · 0⤊ 1⤋
They are eligible itemized deductions, but only can be used if you itemize - if you don't have a mortagage you might not have enough to itemize.
If you do itemize, you can only take the part of the unreimbursed employee expenses (like the tools) that is over 2% of your income.
2007-11-17 02:08:34 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
maximum in all probability no. sales tax is issued by potential of the state. There are others that are federally regulated. examine along with your close by tax expert to be sure if any of the taxes you have paid are deductible. on your 2006 federal taxes you will possibly be waiting to declare an excise tax credit of $30-$60 in case you pay excise tax on your cellular telephone. (examine your expenses).
2016-11-11 21:37:23 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Yes, but you must itemize deductions to deduct them.
Without a mortgage, you may not have enough deductions to itemize.
2007-11-16 21:08:15 · answer #5 · answered by Wayne Z 7 · 3⤊ 0⤋
Yes. Also, Your Property taxes, and his uniforms.
Dave
PS, If these deductions are LESS than the automatic deduction, then do not take them.
Dave
2007-11-16 19:29:05 · answer #6 · answered by sunloverinoregon 2 · 1⤊ 0⤋
heck ya.....we got all our tools deducted... buncha nailguns and saws one year over 3 g's ...
well wait im sorry.. mine were business ded. and that is different... but its still the same i beleive for people that work for the city
2007-11-16 19:27:37 · answer #7 · answered by Livefor2day 3 · 0⤊ 1⤋
Absolutely you can! Check out the link below also
2007-11-16 19:28:59 · answer #8 · answered by Aidan 3 · 0⤊ 1⤋
yup
2007-11-16 19:25:56 · answer #9 · answered by Anonymous · 0⤊ 1⤋