Are union dues tax deductible?


Quick Answer

Union dues and initiation fees are tax deductible provided you itemize them, according to the Internal Revenue Service. It is also permissible to deduct assessments for benefit payments to unemployed union members.

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Full Answer

Pay stubs serve as proof of union dues paid and withheld by your employer, according to The Nest. Certain union fees and expenses are not allowable deductions, though they may be listed as dues. According to the IRS, assessments for the provision of payments to the sick and accident or death benefits are not allowable deductions. Contributions used to influence public opinion or political purposes are not permitted deductions. In addition, contributions to pension funds can not be deducted.

As explained by The Nest, the expense must occur during the year it is being claimed as a deduction. Expenses must be itemized on Form 1040 Schedule A. The type of deduction takes depends on the total amount of itemized deductions, which must be more than the standard deduction. One may claim the total amount of any miscellaneous fees and expenses that is greater than two percent of the adjusted gross income. To calculate the amount of deductible employee union fees and expenses, one should add them together, then subtract 2 percent of the adjusted gross income from this figure, entering the final amount on Schedule A.

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