Can Union Members Write Off Their Union Dues Come Tax Time?

The answer isn’t as straightforward as you might hope. When the Tax Cuts and Jobs Act passed in 2017, it fundamentally changed how union dues are taxed for most workers. Unless Congress takes action to extend or modify the rules, union dues remain non-deductible on your federal taxes through 2025—a situation that affects millions of union members across the country.

What Changed and Why It Matters

Prior to 2018, workers could deduct union dues as miscellaneous itemized deductions on their federal income tax returns. The TCJA suspended this benefit for W-2 employees, categorizing it as an “unreimbursed employee expense.” The reasoning behind this policy change centered on tax simplification and offsetting other tax cuts.

However, there’s one important exception: self-employed individuals remain able to deduct union dues as a legitimate business expense on Schedule C of their tax filing. This means freelancers, independent contractors, and gig workers don’t face the same restriction as traditional employees.

Breaking Down Which Expenses Actually Count

Not all union-related payments qualify as dues. Understanding the distinction matters for those who still have deduction opportunities.

Expenses that might be deductible include:

• Regular membership dues paid to your labor union
• Initiation or admission fees when joining
• Fees specifically tied to collective bargaining representation

Expenses that definitely don’t qualify:

• Political donations or contributions to union-sponsored PACs
• Voluntary payments into strike funds or charitable organizations run by unions
• Union insurance premiums

The State-by-State Picture

Here’s where things get more interesting. While federal tax law closed the door on union dues deductions for most workers, several states still allow them on state income tax returns. New York and Pennsylvania, for instance, permit eligible workers to claim these deductions when filing state taxes.

States without income taxes—Texas, Florida, and Nevada among them—don’t offer this option at the state level. Workers in other states should verify their specific state tax code or reach out to their state’s tax authority to determine eligibility.

Looking Ahead to 2026 and Beyond

The suspension of union dues deductions is scheduled to sunset at the end of 2025. If Congress doesn’t act to extend it, the deduction could theoretically return in 2026 for miscellaneous itemized deductions. That said, tax policy remains fluid, and no one should assume this will happen without monitoring legislative developments.

Other Tax Breaks Worth Exploring

Even though union dues themselves aren’t deductible for most W-2 workers right now, other opportunities might help offset your tax burden:

• Educator expense deduction: Teachers and qualified educators can deduct up to $300 annually for classroom materials and professional development
• Retirement savings advantages: Contributing to 401(k)s or IRAs provides tax-deferred growth potential
• Moving expense deductions: While mostly eliminated for civilian employees, active-duty military personnel may still qualify
• Gig worker deductions: If you work independently, business-related travel, home office costs, and union dues remain deductible

Taking Action on Your 2025 Return

Union members facing the current restrictions should explore what remains possible at the state level and investigate alternative deductions that apply to their specific employment situation. Given the complexity of tax codes across different states and the evolving federal landscape, consulting with a tax specialist who understands labor union taxation can clarify which strategies work best for your circumstances.

Staying informed about potential changes to these rules—particularly as 2025 draws to a close and potential 2026 legislative action looms—will help you make the most of available tax-saving opportunities.