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    Union Dues and Retirement

    A taxpayer was retired in 2016, but he continued to pay union dues associated with his past job. Are the union dues that he paid in 2016 deductible on his 2016 Schedule A as a miscellaneous itemized deduction (subject to 2% of AGI), or is this no longer possible since he was retired?

    #2
    So he pays union dues as an active member even though he's retired?

    I have state government employees who are retired and pay union dues, although at a different rent. I put it in but no one ever qualifies for it.

    Comment


      #3
      there must be a benefit to paying dues after retirement...ask
      Believe nothing you have not personally researched and verified.

      Comment


        #4
        I could use some clarification. I am trying to finish this tax return, and I am not sure if the taxpayer gets this deduction. He was retired when he paid the union dues in 2016. Does this make any difference? Are the paid union dues in 2016 deductible on his tax return?

        Comment


          #5
          Originally posted by Tax Sleuth View Post
          I could use some clarification. I am trying to finish this tax return, and I am not sure if the taxpayer gets this deduction. He was retired when he paid the union dues in 2016. Does this make any difference? Are the paid union dues in 2016 deductible on his tax return?
          Will it even make a difference after the 2% haircut?

          Chris

          Comment


            #6
            Originally posted by Tax Sleuth View Post
            I could use some clarification. I am trying to finish this tax return, and I am not sure if the taxpayer gets this deduction. He was retired when he paid the union dues in 2016. Does this make any difference? Are the paid union dues in 2016 deductible on his tax return?
            Where have you researched?

            Have you tried looking at the following for arriving at your decision? TTB 4-26. Examples of deductible unreimbursed employee business expenses. Also Schedule A instructions provides similar information. Another source, you can reference Pub. 529 page 3 under title "You may be able to deduct the following items as unreimbursed employee expenses."

            Note the key words "Examples of unreimbursed ......." Does your scenario apply?

            You decide.
            Last edited by TAXNJ; 04-14-2017, 10:16 AM. Reason: additional reference
            Always cite your source for support to defend your opinion

            Comment


              #7
              A retiree with employee expenses ??

              I would personally have a hard time listing, as an employee business expense, any such costs.

              If he is retired, he is not an employee. Hence, how can he have any "employee" expenses?

              Of course, as others have already noted, the entire discussion may be completely moot because of the 2% AGI trim and the need to itemize using Schedule A.

              FE

              Comment


                #8
                Originally posted by FEDUKE404 View Post
                I would personally have a hard time listing, as an employee business expense, any such costs.

                If he is retired, he is not an employee. Hence, how can he have any "employee" expenses?

                Of course, as others have already noted, the entire discussion may be completely moot because of the 2% AGI trim and the need to itemize using Schedule A.

                FE
                May or may not. Do you think the Poster would post the question if the "2% AGI" applied? Just asking. Note: some posters said they do place it on the Schedule A even if retired.
                Last edited by TAXNJ; 04-14-2017, 10:36 AM.
                Always cite your source for support to defend your opinion

                Comment


                  #9
                  In this particular case, the amount does exceed the 2% of AGI, and it does make a noticeable difference in regards to the taxpayer's bottom line on the tax return if I enter in these union dues. The taxpayer did receive benefits because of paying these union dues despite the fact that he was retired. Should I put the union dues that he paid in 2016 on his tax return? It appears that I'm getting different answers in response to my question, and it is confusing me. I'm still not sure what to do in regards to his tax return.

                  Comment


                    #10
                    Originally posted by Tax Sleuth View Post
                    In this particular case, the amount does exceed the 2% of AGI, and it does make a noticeable difference in regards to the taxpayer's bottom line on the tax return if I enter in these union dues. The taxpayer did receive benefits because of paying these union dues despite the fact that he was retired. Should I put the union dues that he paid in 2016 on his tax return? It appears that I'm getting different answers in response to my question, and it is confusing me. I'm still not sure what to do in regards to his tax return.
                    Hopefully, if you are the Preparer, you would reference with your research (and if you decide can also use comments of references suggested) IRS information to make your decision. Think it would not be wise to make a decision on a reply post as the definite answer rather it should be made on your research and also if you decide to use any suggestions/comments for further research on IRS information as your support.

                    Question for you is: if any scenario you file and is challenged are you going to say your source of information is based from name of "reply poster" thoughts/suggestions as your answer to support the scenario or from supported IRS information?

                    A "Tax Sleuth" knows what to do. Good luck.
                    Last edited by TAXNJ; 04-14-2017, 11:49 AM.
                    Always cite your source for support to defend your opinion

                    Comment


                      #11
                      What benefit does he get from paying the dues? I have a retired teacher for whom I deduct dues and professional association fees because she still does some substitute teaching and proctors exams. Does he get pension representation or access to some other program?
                      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
                      Alexis de Tocqueville

                      Comment


                        #12
                        when I worked for HRB long time ago, I had client who was a nurse & retired, I still took license fees on schedule A because although she was retired she thought that if she was called , she would be able to work.

                        Comment


                          #13
                          license & union dues

                          Comment


                            #14
                            Another quotable source

                            Originally posted by TAXNJ View Post
                            Hopefully, if you are the Preparer, you would reference with your research (and if you decide can also use comments of references suggested) IRS information to make your decision. Think it would not be wise to make a decision on a reply post as the definite answer rather it should be made on your research and also if you decide to use any suggestions/comments for further research on IRS information as your support.

                            Question for you is: if any scenario you file and is challenged are you going to say your source of information is based from name of "reply poster" thoughts/suggestions as your answer to support the scenario or from supported IRS information?

                            A "Tax Sleuth" knows what to do. Good luck.
                            Have iPhone ? ---

                            "Siri, can I deduct union dues for a retiree?"

                            It's worth a try. . .

                            FE

                            Comment


                              #15
                              Originally posted by taxmom34 View Post
                              when I worked for HRB long time ago, I had client who was a nurse & retired, I still took license fees on schedule A because although she was retired she thought that if she was called , she would be able to work.
                              That's a good one. Never heard of that. If one has a "thought" it is a reason for deductibility? What was the basis for HRB to allow that? Could be helpful if you provide the basis.

                              If she is never "called back" would she have to file amended returns?
                              Last edited by TAXNJ; 04-14-2017, 12:40 PM.
                              Always cite your source for support to defend your opinion

                              Comment

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