As a mechanic, you are entitled to certain deductions of unreimbursed job-related expenses come tax time. In order to maximize your deductions and lower the amount of taxes you owe, you should keep receipts for all expenses you incur throughout the tax year.

The amount of taxes you paid will be listed on a Form W-2, Wage and Tax Statement, which will be sent to you by your employer. If you aren’t employed by a company, or you perform work on your own outside of an employer, your earnings are considered to be self-employment income. Any self-employment income over $400 is subject to self-employment tax. You may also have to make estimated tax payments to cover the amount you report on a Schedule C, Profit and Loss from Business. Self-employed individuals receive a 1099-MISC, Miscellaneous income from those whom they service.

Consider deducting the following expenses to reduce your tax liability:

• Subscription costs for your work related trade journals or publications
• Union and trade association dues
• Insurance premiums for liability and protection from wrongful acts
• Special equipment and tools necessary to your job and replaceable within one year
• Uniform maintenance and costs, as long as the uniform is required and not suitable for everyday street wear – coveralls, work gloves, etc.
• Certain safety equipment – goggles, steel-toed boots
• Licensing and regulatory fees, including flat rate occupational taxes, as long as they are not paid for the first certification

You can also deduct fees you incur when searching for a job in your field. You can hold odd jobs while you are unemployed, however you have to be looking for work in your previous field in order to deduct expenses.

Certain educational courses can also be deducted if they meet specific requirements. Those typically meeting the requirements include refresher courses, vocational classes, and classes that teach new developments. You can’t deduct educational expenses that qualify you for the minimum requirements of your job or that allow you to pursue a new field entirely.

Self-employed mechanics have additional deductions that they may be able to claim on a Schedule C. These include:

• Supplies and incidentals
• Tools and equipment repair
• Advertising costs
• Business bad debt
• Employee compensation, including commission and bonuses
• Rental expenses for leased property
• Excise taxes and other personal business property tax
• Legal and other professional fees
• Travel expenses, including lodging and meals (with limits), if you have to be away from your work home for more than an ordinary days work