Quick Answer
Union dues are no longer deductible for most employees as of 2018. The Tax Cuts and Jobs Act eliminated unreimbursed employee expenses, including union dues, through 2025. However, self-employed individuals can still deduct union dues as business expenses on Schedule C.
Best Answer
Robert Kim, Tax Return Analyst
Traditional employees who pay union dues and wonder if they can still deduct them
Union dues are no longer deductible for W-2 employees
Unfortunately, if you receive a W-2 and pay union dues, you cannot deduct those dues on your federal tax return. This changed in 2018 with the Tax Cuts and Jobs Act, which eliminated the deduction for unreimbursed employee expenses through 2025.
What changed in 2018
Before 2018 (old rules):
2018-2025 (current rules):
2026 and beyond:
Real impact on union members
Example: Typical union member scenario
Even if union dues were deductible today, this worker would need over $15,000 in total itemized deductions to benefit. The $800 in dues alone wouldn't be enough.
Historical context: Even before 2018, many union members didn't benefit from the dues deduction because:
State tax considerations
Some states still allow union dues deductions even though federal law doesn't:
Check your specific state's rules, as they vary significantly.
What you should track anyway
Even though union dues aren't currently deductible, keep records because:
1. 2026 rule change: If Congress doesn't extend the TCJA, dues may become deductible again
2. State returns: Your state may allow the deduction
3. Job changes: If you become self-employed, past union membership might be relevant
4. Legislative changes: Tax laws can change mid-year
Alternative tax benefits for union members
Look for these instead:
Documentation to keep
Save these records:
Form W-2 reporting: Your employer should not include union dues in Box 12 or anywhere else on your W-2 unless they were paid through a pre-tax benefit plan (rare).
What you should do
1. Stop trying to deduct federal: Don't waste time looking for union dues deduction on federal returns for 2018-2025
2. Check state rules: Research whether your state allows the deduction
3. Keep records: Maintain documentation for potential future rule changes
4. Focus on other deductions: Look for deductions you actually qualify for instead
Key takeaway: Union dues are not deductible on federal returns for W-2 employees from 2018-2025, eliminating a deduction that previously saved union members an average of $150-$300 annually. Keep records for potential rule changes in 2026.
*Sources: [IRS Publication 529](https://www.irs.gov/pub/irs-pdf/p529.pdf), [Tax Cuts and Jobs Act Section 67(g)]*
Key Takeaway: W-2 employees cannot deduct union dues on federal returns from 2018-2025, but should keep records for potential rule changes in 2026 and check state-specific deduction rules.
Union dues deductibility comparison: Federal vs. State vs. Self-employed
| Tax Return Type | 2018-2025 Rules | Potential Savings | Requirements |
|---|---|---|---|
| Federal W-2 Employee | Not deductible | $0 | None - deduction eliminated |
| Federal Self-Employed | Fully deductible | $300-$600 | File Schedule C, business-related |
| California State W-2 | Deductible with limits | $25-$100 | Itemize, exceed 2% AGI threshold |
| New York State W-2 | Deductible with limits | $25-$150 | Various AGI limitations apply |
| Most Other States | Follow federal rules | $0 | No deduction allowed |
More Perspectives
Diana Flores, Tax Credits & Amendments Specialist
Independent contractors, freelancers, or business owners who also belong to unions
Self-employed individuals can still deduct union dues
If you're self-employed and belong to a union, you can deduct union dues as a business expense on Schedule C. This deduction survived the Tax Cuts and Jobs Act because it's classified as a business expense, not an employee expense.
Who qualifies as self-employed for this purpose
You can deduct union dues if you:
Common scenarios:
How to claim the deduction
Schedule C reporting:
Example calculation:
Freelance electrician with:
Tax savings:
Documentation requirements
The IRS scrutinizes business expense deductions more closely:
Mixed employment situations
If you have both W-2 and self-employment income:
Key takeaway: Self-employed union members can deduct 100% of union dues as a business expense, potentially saving $300-$600 annually compared to W-2 employees who cannot deduct dues at all.
*Sources: [IRS Publication 535](https://www.irs.gov/pub/irs-pdf/p535.pdf)*
Key Takeaway: Self-employed individuals can deduct 100% of union dues as a business expense on Schedule C, potentially saving $300-$600 annually in combined income and self-employment taxes.
Robert Kim, Tax Return Analyst
Union members who live in states that still allow union dues deductions on state returns
State-by-state union dues rules
While federal law eliminated union dues deductions for employees, many states still allow them. This creates a complex situation where the same expense is treated differently on federal vs. state returns.
States that still allow union dues deductions
Full deduction states (as miscellaneous itemized):
States with special provisions:
Tax preparation complexity
Having different federal and state rules creates extra work:
When state deduction is worthwhile
California example:
Union member with $70,000 income and $900 in dues:
Small savings, but still worthwhile if you're already itemizing.
Record-keeping for state purposes
Even if federal deduction is gone, maintain detailed records for state returns:
Professional tax help recommendation
Consider professional tax preparation if:
Key takeaway: Some states still allow union dues deductions despite federal elimination, but savings are typically small ($25-$100) and require itemizing with sufficient miscellaneous expenses to exceed 2% of income.
*Sources: State tax department publications vary by state*
Key Takeaway: Several states still allow union dues deductions despite federal elimination, but savings are typically small and require meeting itemization thresholds and AGI limitations.
Sources
- IRS Publication 529 — Miscellaneous Deductions
- IRS Publication 535 — Business Expenses
- Tax Cuts and Jobs Act — Section 67(g) - Suspension of Miscellaneous Itemized Deductions
Reviewed by Diana Flores, Tax Credits & Amendments Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.