How do I claim the tools expense deduction for tradespeople?
by TurboTax•5• Updated 1 month ago
Prior to tax year 2023 tradespeople could claim a maximum $500 deduction for tools. After tax year 2022 the maximum deduction is $1,000.
The claim is for the cost of tools and equipment purchased for work, after first reducing the cost by an amount that is indexed annually. For 2024the reduction amount is $1,433. So for example, $2,433 or more of eligible expenses in 2024will result in the maximum deduction of $1,000. For prior years’ thresholds, see Indexation amounts. Your employer must certify (using form T2200) that the tools were required for you to do the work.
To claim this using TurboTax, select your version of software and follow these steps:
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