Business Use of a Car

• A car or other vehicle that you use in your business or job is a tax-deductible expense. If you only use a certain vehicle to perform tasks related to a job or business, you can deduct the entire cost of its operation, but if you use a car for business uses part of the time and personal uses part of the time, you many only deduct the cost of operating it for business purposes. The IRS says that you cannot deduct the cost of commuting to your regular place of business or work sites within your metropolitan area, but you can deduct the cost of traveling from one work site or place of business to another.
  
  

Tools

• The IRS says that taxpayers can deduct the cost of tools used in a work or trade, if the tool wears out within a year of the date of purchase. Carpentry involves frequent use of tools, which can cause them to wear out quickly. If tools or equipment purchased last longer than a year, a deduction may be taken for depreciation over the course of several years, until the cost of the tool is recouped.
  
  

Work Clothing and Protective Gear

• The IRS allows workers to deduct the cost of work clothing, but only if the clothing is required as a condition of employment and is not suitable for everyday wear. In general, the cost of clothes worn while performing carpentry work, like overalls, jeans, T-shirts and caps are not deductible, because they are suitable for everyday wear. You can, however, deduct the cost of any protective gear you purchase, such as safety boots, glasses, work gloves and hard hats.
  
  

Considerations

• The IRS allows deductions for several other work-related expenses that may apply to carpenters, including legal fees related to doing a job, the cost of running a home office, business insurance premiums and the cost of union dues and union initiation fees. Business and work-related expenses are itemized deductions, and when you file a tax return, you must choose to use either the total of your itemized deduction or a standard deduction granted by the IRS. If your standard deduction is higher than the sum of your itemized deductions, you will save more money by taking the standard deduction. The standard deduction is $5,700 for single taxpayers for 2010 tax returns.