Like most other professionals, electricians can claim tax deductions on items that relate to their work. Knowing all of the deductions that you are allowed to make helps you to know how much of a refund you can get back from the government. If you are an electrician, you can count expenses related to your work as miscellaneous deductions as long as you itemise them on Schedule A and they make up more than 2 per cent of your Adjusted Gross Income.
Dues and Premiums
Some of the expenses the IRS allows you to deduct from your taxes are professional dues and premiums you pay. However, there are some conditions you need to meet to deduct these expenses. The first condition is that no one can reimburse these funds to you. Second, these expenses must have a direct relation to your job as an electrician. Some examples are subscriptions to trade journals related to your work, membership dues to professional unions such as the International Brotherhood of Electrical Workers, and the premiums you pay in liability insurance.
Expenses for equipment you use for your job as an electrician are also deductible if they were not reimbursed by your employer (if you are not self-employed). This category includes any specialised equipment or tool you need to perform your work that is replaceable in one year or less. It also includes expenses you pay for safety equipment related to your work, such as steel-toed shoes and goggles, arc flash protective clothing, insulating gloves & sleeves, insulating blankets, switchboard matting, insulated tools and grounding equipment.
Your expenses for uniforms are also fully deductible expenses to you as long as they were not reimbursed by an employer. However, to qualify for these deductions, your uniform must be required by your employer or required for the performance of your work if you are self employed. It also needs to be exclusive to your work: the uniform must not be suitable for daily activities or street wear.
If you have to pay for state or local government regulatory fees and licenses, these expenses are also deductible. However, you cannot deduct them if they were for initial certification or licensing because, in this case, the IRS considers them an investment.
If you are unemployed and you have expenses for job hunting, those expenses are also deductible for you as long as you are looking for a job as an electrician.
Expenses on further education are deductible if it improves your abilities as an electrician, or if it is required by your employer or by the state. Texas, for example, requires an annual four-hour continuing education course for renewing electrical apprentice licenses; the costs for the course would be deductible.
If you are a self-employed electrician, there are other deductions that you are also allowed to deduct besides those already mentioned. Some of these deductions are the expenses you have on a car or truck for travel between work sites, salaries or commissions you pay to employees, professional and legal fees you have to pay (such as accounting), work-related rental expenses, travel expenses and advertising.