Can I Deduct Work Tools and Equipment?

Many workers spend their own money on tools and equipment needed for their jobs, and the deductibility of those costs depends on your employment status. Self-employed workers and business owners can deduct tools and equipment as a business expense, and in many cases they can deduct the full cost in the year of purchase using bonus depreciation or Section 179 expensing. Employees who buy their own tools without reimbursement generally cannot deduct those costs under current federal tax law. Tradespeople such as mechanics, electricians, and construction workers are often surprised to learn this changed after 2017. Some states still allow employees to deduct unreimbursed tool costs on their state return, so it is worth checking locally.