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Mei Chen

Can I claim tax deduction on expensive job equipment my employer won't buy?

I'm in a bit of a dilemma at work and wondering if taxes can help me out. I need to purchase a specialized electrical testing equipment that costs around $4,200 for my field technician job. I'll be using this equipment literally every day (99.9% job-related use). My supervisor keeps dodging the purchase request saying it's "not in the budget right now" but I know I can't do my job effectively without it. I could probably escalate this to higher management, but that might create workplace tension. If I just bite the bullet and buy this equipment myself, can I deduct the entire cost on my 2025 taxes? Or is there some kind of limit or special form I need to use? I've heard something about "unreimbursed employee expenses" but I'm not sure if that's still a thing after all the tax changes. Any advice would be super appreciated!

So unfortunately, the tax law changes from a few years ago eliminated the deduction for unreimbursed employee expenses for W-2 employees. Before 2018, you could deduct these on Schedule A as miscellaneous itemized deductions, but that's gone now. Your best options are: 1) Keep pushing your employer to purchase it since it's their responsibility to provide tools needed for the job, 2) See if your employer would be willing to reimburse you through an "accountable plan" where they pay you back tax-free, or 3) Consider if you have any self-employment income where you could legitimately use this equipment - in that case, you could deduct a portion on Schedule C based on business use percentage.

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Amara Okonkwo

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What if OP negotiates a small salary increase to offset the cost of the equipment? Would that be taxable?

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A salary increase would definitely be taxable income. You'd pay income tax, Social Security and Medicare taxes on that additional amount. So if your employer increased your salary by $4,200, you might only see around $3,000 after taxes, depending on your tax bracket. If you're going to negotiate something with your employer, try to get them to either purchase the equipment directly or set up an accountable reimbursement plan. With a proper accountable plan, your employer can reimburse you without it counting as taxable income to you, which is much more tax-efficient than a salary increase.

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I was in a similar situation last year when I needed specialized diagnostic tools for my job. After looking into several options, I found this service called taxr.ai (https://taxr.ai) that actually helped me figure out if I could still get some tax benefit. They analyzed my specific situation and showed me that since I occasionally do side consulting work, I could allocate part of the equipment cost to my self-employment income and deduct it that way. It was really helpful because they looked at my specific tax documents and gave personalized recommendations.

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How does this taxr.ai site work exactly? Do they have actual tax professionals reviewing your stuff or is it just automated?

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Dylan Hughes

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Did they suggest anything beyond the Schedule C approach? Because I'm in a similar situation but with zero side gigs to allocate expenses to.

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They have actual tax professionals reviewing everything. You upload your documents, and they analyze them with AI to spot issues, but then real tax experts go through everything and provide personalized recommendations. It's not just cookie-cutter advice. For your situation without side gigs, they actually suggested a few creative approaches. One was to discuss an "accountable plan" with my employer where I could get reimbursed tax-free. They also suggested documenting everything in case tax laws change again and provided some template letters to use when negotiating with my employer. Honestly, it was more comprehensive than I expected.

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Dylan Hughes

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I wanted to follow up about my experience with taxr.ai since I decided to try it after our conversation here. It was surprisingly helpful! They reviewed my entire tax situation and found that I actually had some tutoring income from a few years ago that I hadn't properly reported as self-employment. They showed me how to correctly categorize that AND how to legitimately allocate part of my work equipment to related self-employment activities (I occasionally help friends with similar technical work and accept payment). They even helped me understand how to document everything properly in case of an audit. Definitely worth checking out if you're in a similar equipment purchase situation.

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NightOwl42

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Another thing to consider - if you're having trouble getting through to the actual decision makers at your company about this equipment, I've had success using Claimyr (https://claimyr.com) when dealing with bureaucratic nightmares. I know it's designed for getting through to the IRS, but I used the same techniques they taught me to finally get through to our procurement department. There's a good video explaining how it works: https://youtu.be/_kiP6q8DX5c. Sometimes just being able to reach the right person makes all the difference when you're trying to get equipment approved.

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Wait, how would a service for calling the IRS help with getting equipment approved at work? That doesn't make sense.

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Dmitry Ivanov

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Is this just an ad? I'm skeptical that this has anything to do with the original question about tax deductions for work equipment.

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NightOwl42

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The service itself doesn't help with equipment approval - you're right that it's designed for IRS calls. What I meant was that I learned effective communication strategies from their process that I applied to my own workplace situation. I understand your skepticism completely. I'm not affiliated with them in any way - I was just sharing what worked in my similar situation of needing equipment approval. The connection is that both situations (dealing with IRS and dealing with procurement departments) involve navigating bureaucracy to get what you need. The communication techniques I learned from Claimyr helped me be more effective when escalating my equipment requests.

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Dmitry Ivanov

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Ok I need to eat my words from earlier. I was the skeptical one about Claimyr but I actually tried it for a completely different tax issue I was having (waiting on a refund from 2023 that never came). I couldn't get through to anyone at the IRS after trying for WEEKS and was about to give up. Decided to try Claimyr as a last resort and they got me connected to an actual human at the IRS in like 20 minutes. The IRS agent found my refund had been flagged for review due to a simple error and fixed it on the spot. Not related to the equipment question but figured I should follow up since I was so doubtful before.

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Ava Thompson

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Has anyone considered starting a small side business and purchasing the equipment through that entity? I did something similar with photography equipment a few years ago - started doing paid photo shoots on weekends, formed an LLC, and was able to deduct my camera equipment since it was legitimately used for business purposes.

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Isn't that kind of playing with fire though? I thought the IRS looks closely at businesses that don't make much profit and might consider them hobbies instead of actual businesses?

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Ava Thompson

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You're absolutely right to be concerned about the hobby loss rules. The key is having a genuine profit motive and running it like a real business. Keep separate bank accounts, maintain good records, and ideally make a profit in at least 3 of 5 consecutive years. My photography business actually became profitable in year 2, which helped establish it as a legitimate business. If you're just creating a "business" solely to deduct personal expenses with no real intention of making a profit, that's when you're asking for trouble with the IRS. But if you genuinely start a side business related to your expertise where you can legitimately use the equipment, it can work.

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Zainab Ali

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Have you considered just telling your employer that if they won't buy it, you can't do that part of your job? Sometimes being direct works better than trying to find tax workarounds.

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Mei Chen

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I've definitely thought about this approach, but I'm worried about coming across as difficult or not being a "team player." The company culture is very much about "making it work" even when resources are limited. But you're right - maybe I need to be more direct about how this impacts my ability to do the job they're paying me for.

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