Are Union Dues Tax Deductible?

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Union dues are generally not tax deductible. Prior to 2018, most union members could deduct their dues as an unreimbursed employee business expense.

The Tax Cuts and Jobs Act of 2017 made significant changes to how tax law treated union dues.

What Are Union Dues?

Union dues are payments members make to a labor union to support its operations. Union dues are generally 1 to 2% of an employee’s salary, but this amount could change depending on the industry, union and location. 

Professions that may have unions include teachers, police officers, pilots, actors, writers and construction workers. 

Who Can Still Deduct Union Dues?

Union dues are tax deductible in certain instances. As a part of their Schedule C, self-employed workers can deduct union dues as a business expense. 

Some states allow for the deduction of union dues on state tax returns. Maryland and Delaware allow union members to deduct union dues in some cases. Hawaii and Oregon also allow the union dues deduction.

To see if your state allows it, you can check this database. 

How To Deduct Union Dues

Here’s a step-by-step guide on how to deduct union dues.

Check Your Eligibility 

• Self-employed individual: If you’re a self-employed worker and pay union dues as a part of your business, you can deduct the dues as a business expense.
• Employees: If you’re an employee, you cannot claim a deduction on your federal tax return. You may be eligible for the deduction on your state return. 

Collect Your Documentation

• Collect records: Gather all documentation of union dues paid throughout the year. Often your paycheck lists this information. 

Filing as Self-Employed

• Step 1: Complete Schedule C (Profit or Loss from Business) as part of your tax return.
• Step 2: In Part II of Schedule C, list union dues under “Other Expenses” or “Dues and Subscriptions” if applicable.
• Step 3: Report the total amount of union dues paid for the year. 

Filing on a State Tax Return

Generally state tax returns have different instructions for deductions. To claim a deduction on your state return, the steps are typically as follows: 

• Step 1: Check if your state tax return includes a section for itemized deductions or unreimbursed employee expenses.
• Step 2: List the total amount of union dues paid on the relevant line of your state tax form.
• Step 3: Attach any additional forms or schedules your state requires to claim these deductions.

Double Check Your Federal and State Tax Returns

• If you’re claiming a deduction as a self-employed individual on a federal tax return or a deduction on your state tax return, check your math. 

Deduction Example

If a self-employed individual wanted to claim a deduction on a federal tax return, they would: 

• Gather their union dues receipts
• Determine the union dues were at least $600
• Fill out Schedule C, Part II
• List the amount of $600 under dues and subscriptions or other expenses  
• Total all business expenses

Limitations on Union Dues Deduction

There are limitations on the union dues deduction as a result of TCJA 207. Here’s what deductions look like post-TCJA 2017: 

Federal Tax Deduction

• Under the TCJA of 2017, you cannot deduct union dues as a part of miscellaneous itemized deductions for employees from 2018 to 2025.
• The one exception to TCJA of 2017 is if you’re self-employed. You can deduct union dues as part of business expenses on Schedule C. 

State Level Tax Deduction

• Some states allow the deduction of union dues on state tax returns. Check state legislation on the thresholds for claiming this deduction. 

Standard Deductions vs. Itemized Deductions

Individuals are allowed to take a standard deduction or itemize their deductions. 

Standard Deduction 

For standard deductions (the set dollar amount that reduces your taxable income), there are dollar limits on amounts you can claim. These limits vary by your filing status:

• Single: $14,600
• Married filing jointly: $29,200
• Head of household: $21,900

If you take the standard deduction, you do not need to itemize. 

Itemized Deduction

Itemized deductions allow you to take deductions such as mortgage interest, property taxes and charitable contributions, instead of the standard deduction.

Before 2018, union dues could be claimed as a miscellaneous itemized deduction. However it could only be claimed if combined with other unreimbursed employee expenses, they surpassed 2% of your adjusted gross income.

Final Take

Since the TCJA of 2017 became law, union dues are not tax deductible between 2018 and 2025. This may change in 2025 if the law is not extended. However, TCJA did not impact self-employed workers who may still qualify for a union dues deduction under Schedule C.

Also, some individual states allow for union dues deduction. Check your individual state’s legislation for the rules on claiming a tax deduction.       

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