Taxpayer asks:
I’m a Union Steamfitter. As part of a Union am I listed as a Sub Contractor? I work for a company.
Taxgirl says:
If you work for a company and you receive a form W-2, then you are an employee of that company and not a subcontractor. As I understand most unions, you work for a company or are self-employed and you join a union as an addition to your work. The union itself does not pay your wages or assign your job.
However, with respect to other income tax matters, if you (and not your company) pay union dues and initiation fees, you may deduct those as job expenses on your federal income tax return as miscellaneous expenses, assuming that you itemize.
Note, however, that you cannot deduct contributions for sick, accident, or death benefits or contributions to a pension fund even if the union requires you to do so.
(NOTE: Union dues are no longer deductible under the TCJA.)
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
taxgirl, I understand that if someone had their tax return prepared by a company that offered a refund anticipation loan and they it, they would receive a paper check for their tax rebate. Tell these people they won’t have a direct deposit at the bank. Thanks.
Terry, it’s all over the site – thanks!