Unions are a part of the work infrastructure in America, so naturally they had to be weaved into the tax code somehow.
Mark asks, “Hey Mike, hoping you could answer my question about my union dues. I work for one of the Big 3 in Michigan, so we pay quite a bit of money to the union.
I always gave my union dues information to my CPA. I was reading that they aren’t deductible anymore. Could you help explain that to me? Thanks.”
Thanks for writing, Mark. Yes, you have always been able to deduct your dues in the past. However, because of the passing of the Tax Cuts and Jobs Act, union dues are no longer.
The deduction for dues, as well as all other unreimbursed employee business expenses, have been suspended until 2025.
These dues and other expenses were subject to what is known as a 2% floor, meaning that combined they had to be over 2% of your AGI (gross income) in order to be deductible. Anything over that threshold would be deductible.
Now, just because they are suspended for 2018-2025 does not mean that you cannot deduct them in earlier years that they apply to if you have either not filed earlier year returns or are filing an amended return.
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This article is not intended to be financial, tax, or legal advice. For help regarding your specific situation, please consult a local advisor.