What type of income is paid union dues?

[trishping]

How do I report union  dues paid for me?

[xmasbaby0]

Union dues are not income.  They are an expense that you pay for.   They are not deductible on a federal return , but might be deductible on some state returns.

-W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return  to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses

[trishping]

My husband is a union steward and he did not have to pay union dues for this position.  The union paid his portion of the dues so now it looks like income.  None of the categories offered through turbo tax look like they fit.  It isn't a hobby, etc. Not sure which category this "income" is.

[JohnB5677]

Yes, your husband's union dues will show up as income.

By example:

If you are a regular union employee:

• You earn $30,000 a year.
• You pay $1,000 in union dues.
• You can't deduct the dues.
• Net income is $29,000.

Your husband is the union steward.

• He Ears $30,000 a year.
• $1,000 of Union dues is paid for him.
• Gross income is $31,000.
• He didn't actually get $1,000 in cash.
• Net income is the same, $30,000

He is still ahead by the $1,000.  

He will have to pay tax on the $1,000, but so do you.

He will still come out ahead.

@trishping 

Please contact us again with any additional questions.