Are Job Materials Tax-Deductible? + FAQs

Yes, but it depends on your employment status and itemization.

Did you know 94% of U.S. teachers spend about $479 a year of their own money on classroom materials? They – and millions of other workers – often wonder if those out-of-pocket costs are tax deductible. Getting the answer wrong could cost you. If you assume all your work purchases are deductible when they’re not, you might overpay your taxes (or risk an IRS audit for improper claims). On the flip side, if you qualify for a deduction but don’t know it, you could leave money on the table.

In this comprehensive guide, we’ll cover:

🗽 Federal vs. State Rules: Why Uncle Sam (the IRS) might say “no” to your deduction, but your state could say “yes.”
💼 W-2 vs. 1099 Workers: See how employees and independent contractors have completely different rules for claiming tools, uniforms, and other job supplies.
🔍 Real-Life Examples: Concrete scenarios – a construction worker, a graphic designer, a teacher – showing who can deduct what and why.
⚠️ Avoid Costly Mistakes: The common tax errors people make with job expenses (and how to avoid an IRS red flag).
💡 Key Tips & Terms: Simple definitions of IRS lingo (from Form 2106 to Schedule C) and clever strategies (like using an accountable plan) to maximize your savings.

Federal Tax Rules: Why Most Job Expenses Aren’t Deductible (2018–2025)

Under current federal law, most employees cannot deduct job-related materials or expenses on their Form 1040. The Tax Cuts and Jobs Act of 2017 eliminated “unreimbursed employee expense” deductions from 2018 through 2025. In plain English, if you’re a W-2 employee, you generally get no federal tax break for buying tools, gear, or supplies for your job out of pocket.

W-2 Employees: A Big Tax Deduction Freeze – From 2018 onward, W-2 employees have been stuck with this rule: you cannot claim unreimbursed work expenses on your federal return. Before 2018, you could itemize these on Schedule A (subject to a 2% of AGI threshold), but that deduction is suspended.

The only exceptions are a few special employment categories. If you’re an Armed Forces reservist, a qualified performing artist, a fee-basis government official, or have impairment-related work expenses, you can still deduct your job expenses. Those select groups use Form 2106 to calculate expenses and take the deduction above-the-line (directly reducing your gross income).

Also, eligible K-12 educators have a unique break: the Educator Expense Deduction allows up to $300 per year for classroom supplies, claimed on the front of your 1040. But beyond that $300, even teachers can’t deduct extra classroom spending federally. In short, for most employees the federal tax code says: no deduction for your unreimbursed job materials.

1099 Contractors & Freelancers: Your Job Materials = Business Expenses – It’s a completely different story if you’re self-employed. Independent contractors, freelancers, and gig workers can generally deduct all ordinary and necessary expenses for their work. In tax terms, your out-of-pocket job materials are treated as business expenses. You list them on Schedule C (Profit or Loss from Business) with your Form 1040. This means if you buy a $500 tool or pay $100 for work supplies, those costs directly reduce your business income.

The IRS expects that a business will have expenses, so it lets you subtract them before calculating taxable profit. As long as an expense is ordinary (common in your line of work) and necessary (helpful and appropriate for your business), you can write it off.

For example, a freelance graphic designer can deduct software subscriptions and a high-powered laptop, and a contract carpenter can deduct the cost of lumber or new power drills. Many assets can even be deducted immediately (thanks to provisions like Section 179 expensing or bonus depreciation), so a big equipment purchase can yield a hefty deduction in the year you buy it. Importantly, these deductions aren’t limited by itemizing – they come above the line as business adjustments.

Self-Employment Tax Savings: Deducting job materials not only lowers your income tax, it also lowers your self-employment tax. Self-employed folks pay a 15.3% tax for Social Security and Medicare on their net business income. By deducting legitimate expenses, you reduce that net income and save on both income tax and self-employment tax. (For instance, a $1,000 deduction could save a sole proprietor in the 22% bracket about $220 in income tax plus around $153 in SE tax – roughly $373 total in tax savings.)

The bottom line for 1099 workers: take every work expense you’re entitled to. Good record-keeping is key (keep those receipts!), and make sure personal expenses are kept separate. If something is used partly for business and partly for personal use (say you have a laptop or cellphone that you also use outside of work), you can only deduct the portion used for business. As long as you follow the rules, being self-employed offers a big tax advantage – your job materials are fully deductible as the cost of doing business.

State Tax Nuances: Where Some Workers Catch a Break

Even though the IRS slammed the door on unreimbursed employee expense deductions, some states still open a window for them. State income tax laws don’t always match federal law. In fact, a handful of states continued to allow itemized deductions for job-related expenses after 2018. This means if you’re a W-2 employee in one of these states, you might be able to deduct your unreimbursed work costs on your state tax return (even though you can’t on your federal return).

As of 2025, the states that still give a tax break for unreimbursed employee expenses include Alabama, Arkansas, California, Hawaii, Maryland, Minnesota, New York, and Pennsylvania. If you file taxes in one of these states, you could itemize your job expenses on the state return. The specifics vary by state, as summarized below:

State	State Deduction for Unreimbursed Job Expenses
Alabama	Yes – Allows itemized deduction for unreimbursed employee business expenses (any profession). You can itemize on your Alabama return even if you took the standard deduction federally. Uses Form 2106 to compute allowable expenses.
Arkansas	Yes – Permits a state itemized deduction for unreimbursed job expenses, following rules similar to pre-2018 federal law. Arkansas taxpayers can claim employee business expenses on the state Schedule if they itemize.
California	Yes – Unreimbursed employee expenses can be deducted on California state returns. California did not conform to the federal suspension, so employees can itemize work expenses (even if they claim the standard deduction federally).
Hawaii	Yes – Hawaii allows miscellaneous itemized deductions like unreimbursed employee expenses. Workers in any profession can deduct eligible job costs on their HI state return by itemizing.
Maryland	Yes – Maryland continues to let employees itemize and deduct unreimbursed work expenses on the state income tax return. The state itemized deduction includes job expenses that the IRS disallows during 2018–2025.
Minnesota	Yes – Minnesota offers a deduction for unreimbursed employee expenses. Taxpayers itemize on the MN return and use Form M1UE to calculate the allowable amount, which then goes on Minnesota’s itemized deductions schedule (M1SA). Proper records (receipts, mileage logs, etc.) are required.
New York	Yes – New York decoupled from the federal change and still permits unreimbursed employee business expenses as an itemized deduction. NY taxpayers can claim job-related expenses on Form IT-196 (Itemized Deductions) if they itemize for state purposes.
Pennsylvania	Yes – Pennsylvania allows a deduction for unreimbursed employee business expenses as an adjustment to income (not an itemized deduction). PA uses Schedule UE for each W-2 job, letting employees subtract qualifying expenses (tools, uniforms, travel, etc.) from their state taxable wages. This is available regardless of whether you itemize other deductions.

(In all other states, unfortunately, W-2 employees get no deduction for job expenses on the state return either – those states adopted the federal rules fully.)

Important: If you plan to deduct work expenses on a state return, you usually must itemize deductions for that state (unless you’re in Pennsylvania or a similar system). Some states even let you itemize on the state return when you didn’t on the federal. Be sure to check the forms or software for any extra steps (for example, Minnesota requires a special M1UE form; Pennsylvania requires Schedule UE attachments). The upside is that state deductions can give you some relief, but remember state tax rates are often lower – so a state-only deduction might save, say, 5% of the expense in tax instead of the 22% you’d save at the federal level. Still, every bit counts!

Real-World Examples: Deductible or Not?

Let’s apply these rules to real people. Below are three scenarios illustrating how job material deductions work in different situations. Each example contrasts a W-2 employee with a similar self-employed person, to show who can deduct what.

Construction Worker: Buying Tools

Meet Jack and Jill – both are in construction, and each spent $500 on new tools required for work. Jack is a salaried construction foreman (receives a W-2), while Jill is a self-employed carpenter (independent contractor).

Scenario	Can they deduct the $500?
Jack – W-2 employee, spends $500 on job-required tools (unreimbursed)	Federal: No. Jack cannot deduct the $500 on his federal return because unreimbursed employee expenses aren’t allowed on Form 1040 under current law. State: If Jack lives in a state like California or New York that still allows these deductions, he could claim the work tools on his state tax return. Otherwise, he gets no state deduction either.
Jill – 1099 contractor, spends $500 on work tools for her business	Yes. As a self-employed worker, Jill can deduct the full $500 as a business expense on Schedule C. This will directly reduce her taxable business income (saving her money on both income tax and self-employment tax). Jill should keep the receipt for her tools with her tax records, but she’ll get to write off the cost.

Why: Jack’s expenses are “unreimbursed employee” costs – the IRS won’t let him deduct them (and only a few states might). Jill’s expenses, however, are ordinary for her carpentry business, so the IRS treats them as fully deductible.

Graphic Designer: Software & Equipment

Now consider Alice and Bob, both graphic designers. Alice works for a marketing agency as a W-2 employee. Bob is a freelance graphic designer. Each spent $1,500 on a new laptop and design software for work.

Scenario	Deduction Outcome
Alice – W-2 employee at a design firm, spends $1,500 on a laptop + software for her job	Federal: No deduction. Even though the laptop and software are used for her job, Alice gets no federal deduction because she’s an employee and these are unreimbursed work expenses. State: If her state (for example, New York) allows unreimbursed employee expenses, she could itemize and deduct the $1,500 on her state return. If not, Alice simply cannot write off these costs.
Bob – Self-employed freelancer, spends $1,500 on a laptop + software for his design business	Yes. Bob can deduct the full $1,500 as business expenses on his Schedule C. In fact, he may use Section 179 to expense the entire cost of the new laptop in the year purchased. This write-off will significantly lower his taxable income. (Because he’s self-employed, these purchases are viewed as necessary tools of his trade.)

Why: Alice’s situation is a common frustration – she needed a better computer for her work, but since her employer didn’t reimburse her, it’s just her personal expense now. Tax-wise, she gets no relief federally. Bob, however, essentially gets the government to subsidize part of his purchase through a tax deduction, because his laptop and software are directly related to earning his business income.

Teacher: Classroom Supplies

Finally, let’s look at Megan and Kevin, who both spend $600 on educational materials. Megan is a 4th grade teacher at a public school (W-2 employee). Kevin is a self-employed tutor running his own tutoring business.

Scenario	Deduction Outcome
Megan – 4th grade teacher (W-2), spends $600 on classroom supplies	Federal: Partially. Megan can deduct $300 of her classroom expenses under the special educator expense deduction (this is an above-the-line deduction on Form 1040). The remaining $300 is not deductible on her federal return. State: If Megan’s state allows unreimbursed employee expenses, she may be able to deduct the extra $300 on her state return. (For example, New York permits teachers to itemize excess classroom expenses as unreimbursed employee costs.) Otherwise, she gets no tax break for the portion above $300.
Kevin – Self-employed tutor, spends $600 on teaching materials	Yes. Kevin can deduct the full $600 as business expenses on his Schedule C. There’s no $300 cap for him because he’s not a W-2 educator – he’s a business owner. All his textbooks, software, and supplies for tutoring are ordinary and necessary business costs, fully deductible against his tutoring income.

Scenario

Deduction Outcome

Megan – 4th grade teacher (W-2), spends $600 on classroom supplies

Federal: Partially. Megan can deduct $300 of her classroom expenses under the special educator expense deduction (this is an above-the-line deduction on Form 1040). The remaining $300 is not deductible on her federal return. State: If Megan’s state allows unreimbursed employee expenses, she may be able to deduct the extra $300 on her state return. (For example, New York permits teachers to itemize excess classroom expenses as unreimbursed employee costs.) Otherwise, she gets no tax break for the portion above $300.

Kevin – Self-employed tutor, spends $600 on teaching materials

Yes. Kevin can deduct the full $600 as business expenses on his Schedule C. There’s no $300 cap for him because he’s not a W-2 educator – he’s a business owner. All his textbooks, software, and supplies for tutoring are ordinary and necessary business costs, fully deductible against his tutoring income.

Why: Megan benefits from the one small carve-out for teachers: the $300 educator deduction. But even though she spent double that, the tax code caps her federal deduction – the rest of her spending is essentially a personal expense from a tax perspective. Kevin, on the other hand, is treated like any other self-employed professional. Every dollar he spent to run his tutoring business is deductible, which feels a lot fairer to him at tax time.

Pros and Cons of Claiming Job-Related Expenses

Is it worth trying to deduct your job materials? Here’s a quick look at the upsides and downsides of these deductions:

Pros	Cons
Lowers your taxable income – Deductions reduce the amount of income you’re taxed on, so you ultimately pay less tax (you keep more of your money).	Not available to most employees – W-2 employees generally cannot deduct unreimbursed job expenses on federal taxes under current law, so for many people this tax break simply isn’t an option.
Self-employed benefit fully – Independent contractors can deduct work materials and supplies freely, even reducing their self-employment tax. This can lead to substantial savings and a lower overall tax rate on their income.	Requires careful record-keeping – You need to save receipts, invoices, and logs to prove your expenses. If you can’t document an expense when the IRS asks, you’ll lose the deduction (and could face penalties).
Offsets work costs – Tax deductions help offset the money you must spend to do your job. If your employer doesn’t pay for something necessary (tools, safety equipment, etc.), a deduction at least softens the financial blow.	Itemizing hurdles – Even when employee expenses were deductible, you had to itemize deductions (and exceed the standard deduction) to claim them. Many taxpayers never itemize, so they wouldn’t benefit unless their expenses were quite large.
State tax relief – Some states still allow these deductions, which can provide a bit of tax relief at the state level even if the federal deduction is gone. It’s not a federal fix, but it’s better than nothing.	Limited savings – A deduction only saves you a percentage of the expense (equal to your tax rate). And state deductions save even less due to lower state tax rates. You still bear most of the cost out of pocket.
Fairness for business owners – For self-employed individuals, deductions ensure you’re taxed on net income (after expenses) rather than gross. This is only fair – if you have to spend money to earn money, you shouldn’t pay tax on those spent dollars.	Audit risk – Large or unusual work-expense claims can be a red flag. An employee claiming huge “miscellaneous” expenses (back when it was allowed), or a freelancer deducting an unusually high amount, might draw IRS scrutiny. It’s not automatic, but it’s a risk to be mindful of.

Avoidable Mistakes When Deducting Job Expenses

When dealing with work-related expenses on your taxes, it’s easy to slip up. Here are some common mistakes to avoid:

Deducting expenses that were reimbursed. You cannot claim a tax deduction for any work expense that your employer paid you back for. (Double-dipping is a big no-no – if you got a tax-free reimbursement under an accountable plan, that’s the end of it. No deduction allowed.)
Trying to write off personal costs as “job” expenses. Expenses like everyday clothes, your daily commute, or a fancy briefcase for personal use don’t qualify. Only expenses that are directly related to your work and necessary for it can ever be deducted.
Assuming you can deduct as a W-2 employee (after 2018). Many people haven’t realized that the law changed. If you try to claim unreimbursed job expenses as an employee today, it will do nothing (on federal taxes) or even flag an error. Unless you’re in a special category or prepping a state return that allows it, W-2 workers should not be deducting job materials on federal returns right now. Also, remember that even if the law changes back, you’d need to itemize and have sufficient expenses to benefit.
Ignoring the educator expense limit. Teachers sometimes mistakenly try to deduct all their classroom spending. In reality, the federal deduction is capped (currently $300 per year). Don’t attempt to put the rest on Schedule A – it won’t count (unless your state lets you do something on the state return).
Not keeping proof of purchases. If you’re deducting anything work-related, keep the receipts and any supporting documents. This is especially crucial for self-employed folks. If audited, you’ll need to show what you bought, how much it cost, and how it was connected to your work. No documentation = no deduction, in the IRS’s eyes. Stay organized and save those receipts (even digital scans are fine).

Common Misconceptions About Job Expense Deductions

There’s a lot of confusion around this topic. Let’s debunk a few myths:

“If it’s for work, I can deduct it.” – Not necessarily. This is true only if you’re self-employed (or fall into an exempt category). Regular employees cannot deduct most work purchases under current IRS rules.
“Tax deduction = getting all the money back.” – A deduction is not a dollar-for-dollar refund. It just reduces your taxable income. For example, a $100 deduction might save you about $22 in tax if you’re in the 22% bracket. You’re still out the other $78. (A tax credit would be different – credits directly reduce taxes owed, but job materials don’t get credits.)
“If I don’t itemize, I can’t deduct any work expenses.” – This is false in certain cases. If you’re self-employed, your business write-offs go on Schedule C and don’t require itemizing. Also, the special above-the-line deductions (like the $300 educator expense, or expenses for reservists) can be taken without itemizing. Itemizing was only a factor for miscellaneous employee deductions, which are suspended federally for now.
“All work-from-home expenses are deductible.” – Not for W-2 employees. This misconception became common with the rise of remote work. In truth, home office and other work-from-home expenses are only deductible for self-employed individuals. If you’re a remote employee, you unfortunately get no federal deduction for your home office setup, internet, etc. (unless your state provides something).
“I’d rather deduct expenses than have my employer reimburse them.” – For employees, a reimbursement is actually better. Under a proper accountable plan, your employer’s reimbursement is not taxed at all – it’s like getting a full pre-tax payback. Given that you can’t deduct those expenses on federal taxes now, you definitely want to seek reimbursement if possible. Even in the past, a reimbursement was often equal or better, since a deduction only gives you a partial benefit. In short, always take the reimbursement if offered; only deduct if you have to pay it yourself and meet the rules.

Definitions of Key Terms

To navigate this topic, you should understand some tax jargon. Here are key terms and what they mean:

Unreimbursed Employee Expenses: Money you spend out-of-pocket for your job that your employer does not pay back. These can include tools, supplies, uniforms, professional dues, work-related travel, etc. They used to be deductible as a miscellaneous itemized deduction (over 2% of AGI) on your federal return, but that deduction is suspended for 2018–2025 (except for certain professions).
Miscellaneous Itemized Deductions: A category of deductions on Schedule A that included unreimbursed job expenses (along with expenses like union dues, investment fees, tax prep fees, etc.). These were subject to a floor – only the total that exceeded 2% of your Adjusted Gross Income was deductible. The Tax Cuts and Jobs Act suspended all miscellaneous itemized deductions through 2025, meaning you can’t claim them on your federal return during this period.
Schedule A: The form for itemized deductions on a federal tax return. Taxpayers use Schedule A to list deductions like mortgage interest, state taxes, charitable contributions, and (formerly) miscellaneous deductions such as unreimbursed employee expenses. If your total itemized deductions exceed the standard deduction, you would use Schedule A. Since 2018, most people take the now-higher standard deduction, and unreimbursed work expenses no longer appear here for federal taxes.
Schedule C: The form titled “Profit or Loss from Business” (part of Form 1040) used by sole proprietors and independent contractors. If you have self-employment income, you report it on Schedule C and list all your business expenses. Job materials for a freelancer or 1099 contractor are deducted on Schedule C. The net profit from Schedule C (income minus expenses) then flows into your Form 1040. This is how self-employed individuals claim deductions without itemizing.
Form 2106: The Employee Business Expenses form. W-2 employees in certain categories (like reservists, performing artists, etc.) use Form 2106 to calculate their allowable job expenses. Prior to 2018, other employees also used it to support their Schedule A deductions. Now, Form 2106 is only for those specific occupations that can still deduct expenses above-the-line, or for employees claiming expenses on a state return. For example, if your state allows unreimbursed expenses, you might fill out Form 2106 and attach it to the state return.
Educator Expense Deduction: A special adjustment to income (above-the-line deduction) for eligible teachers and K-12 instructors. They can deduct up to $300 per year for unreimbursed classroom supplies and materials they purchase. This deduction is claimed on Schedule 1 of Form 1040, so it doesn’t require itemizing. (If two married educators file jointly, they could get up to $600, $300 each.) This is one of the few tax breaks for employee expenses that survived the 2017 law changes.
Accountable Plan: An expense reimbursement arrangement set up by an employer that meets IRS rules. Under an accountable plan, employees submit their work expense receipts to the employer and get reimbursed. The reimbursements are not taxed and do not show up on the employee’s W-2 as income. Because of this, the employee can’t deduct the expenses (you already got paid back pre-tax).
- Accountable plans are the ideal way for W-2 employees to handle job costs now – you effectively get a full deduction because the reimbursement isn’t counted as income. (In contrast, if your employer just gives a lump sum or doesn’t require proof, it might be a non-accountable plan, and that money could be taxable.)
Ordinary and Necessary Expense: A standard from tax law (IRC Section 162) that defines what business expenses are deductible. Ordinary means the expense is common and accepted in your trade or profession. Necessary means it is appropriate and helpful for your business (it doesn’t have to be absolutely essential, but it should be related to your business purpose). For any expense – including job materials – to be deductible for a business or self-employed person, it must meet this “ordinary and necessary” test.

FAQ (Frequently Asked Questions)

Q: Can W-2 employees deduct unreimbursed job expenses on their taxes?
A: No. Under current federal law (2018–2025), most W-2 employees cannot deduct job-related expenses on Form 1040 (unless in a special category). A few states allow these deductions on state returns.

Q: Can independent contractors (1099 workers) write off job materials?
A: Yes. Self-employed individuals (1099 contractors) can deduct ordinary and necessary business expenses – like job materials – on Schedule C. These deductions lower their taxable income (and reduce self-employment taxes too).

Q: I bought a laptop for my W-2 job. Is it tax deductible?
A: No. Unreimbursed work purchases (like a laptop) aren’t deductible for W-2 employees on federal taxes under current law. Only self-employed people can deduct such equipment as a business expense.

Q: Can I deduct work clothes or uniforms?
A: No. The cost of normal work clothing (like suits) is not deductible. Only specialized gear or required uniforms are deductible – for self-employed individuals or on certain state returns.

Q: Can teachers deduct all the money they spend on classroom supplies?
A: No. Educators can only deduct up to $300 per year of classroom supplies on their federal return. Anything beyond that is not deductible federally (though some states let teachers deduct more).

Q: I work remotely as a W-2 employee. Can I claim the home office deduction?
A: No. Regular employees cannot take a home office deduction on their federal taxes (2018–2025). That deduction is only available to self-employed individuals who use part of their home for business.

Q: My state allows unreimbursed employee expenses. Can I deduct them on my state taxes?
A: Yes, in some cases. A handful of states like CA, NY, and PA still let W-2 employees claim unreimbursed job expenses on their state return. You must itemize and follow your state’s rules.

Q: My employer reimburses me for work purchases. Can I also deduct those expenses?
A: No. If your employer provides a tax-free reimbursement (under an accountable plan), you cannot deduct that expense on your return. You’ve essentially already gotten the tax benefit via reimbursement.