Are Market Recovery Fees paid by union members deductible on Schedule A. Can't get a simple yes or no answer to this. These are definitely reductions from employee pay and definitely go to the union, but can they definitely be considered union dues? and thus deductible?... Union dances around this question by giving the standard useless reply to my client "check with your tax advisor".
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market recovery fees
The money collected from union workers is pooled into a market recovery fund controlled by union bosses. A union contractor has an agreement with union bosses of the union that they will subsidize a contractor for a specific job to underbid a competitor. If the union contractor is successful and wins the job, the contractor receives money from the union, funded by past deduction from the workers wages.
I would say it is the same as union dues but you might want to check it out. -
Ruthes, thanks for the reply buy why is it I can't get a definitive yes to no to this issue no matter how much I research. Appreciate (and already aware of) your reply but my understanding is that these costs are nothing but "lobbying" deductions used to prevent non-union contractors from getting large jobs. There are even court cases attesting to same and complaints that these are in violation of Federal Anti-Trust Laws. Actually, I couldn't care less if they're illegal activities, bribes, extortion, etc. Just want a simple yes or no as to deductibility and not even the union will give a definitive yes or no. Client had almost $1,500 deducted from his 2013 pay as Market Recovery and that's a lot of money at 28%.Comment
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Market Recovery Deduction
I typed the question in to google because I couldn't find it in any tax books. I was curious what it was.Comment
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