If you’ve ever stared at your pay stub and wondered, Can I claim union dues on my taxes?—you’re not alone. Claiming union dues on your taxes is a hot topic for workers across the country, especially with recent changes in tax laws. Whether you’re a union member, a freelancer, or just tax-curious, understanding the rules around union dues tax deductions can make a real difference in your refund (or your stress levels). In this guide, we’ll break down everything you need to know about union dues, tax deductions, eligibility, and the steps to claim them—plus a few tips to help you avoid common mistakes. So grab your T4, your receipts, and your sense of humor, and let’s dive into the world of claiming union dues on your taxes!
What Are Union Dues and Why Do They Matter for Taxes?
Union dues are regular payments made by members to their labor union. These funds support collective bargaining, legal representation, and other benefits for union members. For years, union dues were considered a deductible expense on federal tax returns for many employees, making them a valuable way to lower taxable income.
Are Union Dues Still Deductible?
Here’s the scoop: Due to the Tax Cuts and Jobs Act (TCJA) of 2017, most employees can’t deduct union dues on their federal taxes for tax years 2018 through 2025. This law suspended the deduction for unreimbursed employee expenses, including union dues, for W-2 workers. Unless Congress changes the rules, this deduction won’t return until at least 2026.
Who Can Still Deduct Union Dues?
- Self-Employed Individuals: If you’re self-employed, you can still deduct union dues as a business expense on Schedule C, as long as they are “ordinary and necessary” for your trade or profession.
- State Tax Returns: Some states—like New York, Pennsylvania, California, Minnesota, and others—still allow union dues deductions on state income tax returns. Check your state’s tax rules or talk to a tax professional to see if you qualify.
What Counts as Deductible Union Dues?
- Deductible: Regular membership dues, fees for maintaining professional status, and certain board or committee dues required by law.
- Not Deductible: Initiation fees, political contributions, voluntary donations, or union insurance premiums.
How to Claim Union Dues on Your Taxes
For Self-Employed Workers:
- Report your union dues under “Other Expenses” or “Dues and Subscriptions” on Schedule C.
- Keep all receipts and documentation—your union or professional association should provide an annual statement.
For Employees (State Returns):
- Look for a section on your state tax form for unreimbursed employee expenses or union dues.
- Attach receipts or your T4 slip (Box 44 in Canada) as required.
Tips to Avoid Common Mistakes
- Don’t double-claim: If your employer reports union dues on your T4 and you also get a receipt from your union, claim the amount only once.
- Check eligibility: Make sure your dues are actually deductible—initiation fees and voluntary contributions don’t count.
- Consult a pro: State rules can be tricky; when in doubt, get advice from a tax professional.
What’s Next for Union Dues Deductions?
The current federal suspension on union dues deductions is set to expire after 2025. Unless new laws are passed, these deductions could return in 2026. Stay tuned and keep those receipts handy just in case.
FAQs
Can I claim union dues on my federal tax return in 2025?
No, most employees cannot claim union dues on their federal tax return for 2025 due to current tax law. Only self-employed individuals may deduct them as a business expense.
Are union dues deductible on state tax returns?
Yes, some states still allow deductions for union dues on state income tax returns. Check your state’s rules or consult a tax professional.
What documentation do I need to claim union dues?
You’ll need receipts from your union or your T4 slip (Box 44 in Canada) to prove the amount paid in union dues.
Will union dues become deductible again?
Possibly. The current suspension is set to expire after 2025, so deductions may return in 2026 unless new laws are passed.