Tax Reminder: Certain Itemized Deductions — Like Union Dues — Are Now Suspended

There are some new changes to IRS tax policies – including with regards to membership dues and various other expenses that many employees may have itemized in the past.

Employees can no longer deduct union dues in tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act (TCJA), which Congress signed into law on December 22, 2017.

However, if you’re self-employed, you can still deduct union dues as a business expense.

What changed?

The previous deduction for job-related expenses or other miscellaneous itemized deductions that exceeded 2 percent of your adjusted gross income is now suspended. This includes unreimbursed employee expenses such as:

• uniforms;
• union dues;
• business-related meals;
• entertainment;
• and travel,

as well as any deductions you may have previously been able to claim for tax preparation fees and investment expenses, including:

• investment management fees;
• safe deposit box fees;
• and investment expenses from pass-through entities.

The business standard mileage rate listed in Notice 2018-03 cannot be used to claim an itemized deduction for unreimbursed employee travel expenses during the current suspension.

What does this mean for me?

If you do decide to itemize your taxes, and if your miscellaneous itemized deductions (like what’s listed above) previously needed to exceed 2% of your adjusted gross income, they are now no longer deductible.

The IRS has a thorough explainer at their official website, which you can visit here.

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