On a 2026 federal tax return, union dues go on Schedule C if you’re self-employed and nowhere if you’re a W-2 employee. The Tax Cuts and Jobs Act ended the miscellaneous itemized deduction that once covered union dues, and the One Big Beautiful Bill Act signed on July 4, 2025 made that elimination permanent.1 Your state return may be a different story.
W-2 Employees: No Federal Line for Union Dues
If you receive a W-2, don’t put your union dues anywhere on your federal return. Not Schedule A, not an adjustment line, nowhere. The old miscellaneous itemized deduction subject to the 2% AGI floor was suspended starting in 2018 and has now been eliminated with no sunset date. The 2025 Form 2106 instructions confirm this.
A short list of employees can still deduct unreimbursed work expenses, including dues, using Form 2106:
- Armed Forces reservists, for travel tied to reserve duties.
- Qualified performing artists who meet the income and multi-employer tests.
- Fee-basis state or local government officials.
- Employees with impairment-related work expenses.
For these filers the deduction is an adjustment to gross income, so you don’t need to itemize. If you’re not in one of these categories, the federal deduction isn’t available to you, and no line on the 1040 is going to accept it.
Self-Employed: Deduct Dues on Schedule C
If you’re a freelancer, independent contractor, or sole proprietor, union or professional organization dues are an ordinary and necessary business expense. Report them on Schedule C (Form 1040), Line 48 under “Other Expenses,” listing the type and amount. The total from Line 48 carries to Line 27a on the front of the schedule and reduces your net business profit.
The dues have to connect to the trade or business you’re actually running. A union in your line of self-employed work qualifies; an organization unrelated to how you earn your income does not. If you have both W-2 wages and self-employment income, only the dues tied to the self-employment work belong on Schedule C. You can’t route dues from your day job through your business return.
What Portion of Dues Actually Counts
Even when a deduction is available, not every dollar you send your union is deductible. Regular membership dues, initiation fees, and assessments for collective bargaining generally qualify. These do not:
- Political contributions and payments to union-sponsored PACs.
- The portion of dues that funds lobbying or influencing legislation, which is non-deductible under IRC 162(e).
- Voluntary contributions to union-sponsored charities or strike funds beyond required dues.
Your union may tell you what share of dues went to lobbying and political activity, though labor organizations aren’t always required to break it out. If they do, reduce your Schedule C deduction by that amount.
State Returns May Still Allow It
Many states didn’t follow the federal government in wiping out the unreimbursed employee expense deduction. That means a W-2 employee with no federal write-off may still have one on a state return. Rules vary: some states apply their own 2% AGI floor, some allow a full deduction, some have no income tax at all.
Where the deduction survives, you’ll usually claim it on a state-specific itemized deductions form or an unreimbursed employee business expenses schedule. Some states let you itemize on the state return even when you took the federal standard deduction. Check your state tax authority’s instructions for the correct form and any documentation it wants.
Records to Keep
The IRS wants receipts, canceled checks, bank statements, or similar records backing any deduction you claim. For dues, that usually means the annual dues statement from your union, pay stubs showing the deduction, or receipts for lump-sum payments like initiation fees. Track the full amount paid during the calendar year and note separately any portion the union identifies as lobbying or political spending. Most unions send an annual statement; if yours doesn’t, ask for one.