Workers who buy job-related items may be surprised at tax time
Jun 24th, 2008 by Afiya
June 19th, 2008 @ 6:33am
by Colton Shone/KTAR
Nearly half the people in a recent nationwide poll said they are spending their own cash on computers and other gadgets for work-related purposes. They could be in for a surprise when they try to take tax deductions for their expenses.
Bill Brunson of the Phoenix office of the Internal Revenue Service said, to write off a laptop, blackberry or other item, it must be a condition of your employment.
“It might be for the employer’s convenience, but it might not be a requirement that he is placing on a particular employee,” Brunson said. “You’ve got to meet the criteria where it’s for the employer’s convenience, as well as a condition of your employment.”
If the item is required for your job, you must itemize on your income tax returns and spend more than 2 percent of your annual gross income on work-required items.
“This type of an item, where you’re talking about your cellphone or your personal laptop, is generally not going to be an item that has a tax benefit for the employee,” Brunson said. He said most items can also be used for personal business and that eliminates any tax credit.
Bill Hughes with the research company, In-Stat, said he is shocked that so many companies make employees pony up for their own computers.
“What I found is that almost 40 percent of the laptops that people carry with them regularly they bought for themselves,” Hughes said. He said companies should make the investment because work-related gadgets can save time and increase efficiency.
