Can I use my tools purchases through out the year to relieve me from tax debt?
I work at a body shop and don't get any fed or state withheld
However I have tool expenses which I use 100 percent of the time at.work
Over 2500 dollars have been played through out the year
I was told by my boss that I wouldn't owe any taxes if I used my.tools as a deductible
But I am concerned that it ain't so
- JudyLv 73 years agoFavorite Answer
Might cut your tax or might not, but not likely take you to owing zero. If you're an employee, you can only deduct them if you itemize, and you probably don't have enough deductions to itemize unless you own a house. You are mosr likely going to owe when you file.
- RufusLv 53 years ago
Without knowing how much income you have, nor what other expenses you may have, you can't tell if you will still owe taxes or not, but you can depreciate your tools as an expense, or expense them all out in one year to reduce your tax !
- Beverly SLv 73 years ago
If you get a W2 you can't deduct tools. If you get a 1099 you can.
- troLv 73 years ago
your boss is badly informed
as an employee who is required to provide his own tools he can claim that on Sch A under Misc deductions
if you are not able to use Sch A, the purchase of your tools will do nothing for you
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- EvaLv 73 years ago
Not even close. You would have to have enough deductions to add up to more than the standard deduction and the tools are subject to a subtraction of 2% of your gross income anyway. Why are you not having taxes withheld? It's your own fault you owe.
- Max HooplaLv 73 years ago
Ding Ding: Clueless Alert Sounding! As soon as I read "my boss" I knew he wasn't feeding you one line, but several. You may be able to write off your tools but unless your income amount to less than minimum wage it won't wipe out much.
Next: Why do you not have federal and state taxes withheld? Are you holding back about 30% of your pay to cover taxes or are you planning to have a big bill when you file your tax return. Could it be because your "boss" is treating you like an employee on the job but an independent contractor on pay day? If you were an independent contractor you should be paid significantly more than a counterpart who punches a clock or gets paid by piecework. If you are working on your boss's premises on vehicles owned by your boss's customers during your boss's business hours you are an employee and should have taxes withheld from your wages. You should contact your state unemployment tax agency and tell them how you are being treated and file an IRS Form SS-8 to get an official ruling. Both should want to set your boss up for the employment taxes that he should be paying. Back to your original question: If you are self-employed you can write off the cost of your tools. $2,500 won't go very far in reducing taxable income and will be a long way from making tax go away. If you are an employee you can deduct the cost of your tools if you itemize deductions--this is something you are not likely to do unless you are buying a house and paying mortgage interest. In that case you can deduct what you spend less 2% of your adjusted gross income so if you earned $40,000, you could deduct $500 ($2,500 minus $40,000 times 2%.)
- 3 years ago
I've spent 2500 this year Alone
My income was 24000
And I want to itemize them but I don't think I can do that using an onlibe tax program
For example TurboTax
- Anonymous3 years ago
Your boss is not a tax advisor.
How much did you spend on tools?
How much was your income?
Do you already itemize?
- RobtLv 73 years ago
IF in USA, yes maybe nope depending on numerous unknowns.
Libraries got books on how to figure out ur taxes.
Given what you said about NO taxes withheld - - u getting Screwed.😨
Ur boss is full of bovine manure (sh it).
U'll OWE LOTS of taxes, penalties, fees.😠
Hopefully u got educated adults locally to explain reality to u there FAST.
Ur boss is screwing u.😵
End of year u'll OWE income tax, social security, Medicare tax, self-employed taxes.
In USA we got IRS GOV website for enlightenment education about taxes.
Contact local state department of employment and get educated fast.Source(s): Employer of uninformed kids