Workers gain direct tax deduction for union dues and job expenses
S. 1286 — Tax Fairness for Workers Act · Filed by Tina Smith (D-MN) · 35 cosponsors · Introduced Apr 3, 2025 · Referred to committee
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What it does
This bill allows workers to deduct union dues and other job-related expenses directly from their taxable income (above-the-line), rather than being subject to the current 2% floor that applies to miscellaneous deductions. Currently, most employee business expenses are either non-deductible or subject to strict limits; this bill removes those limits for union dues and all unreimbursed work expenses, making them easier to claim and more valuable to workers.
Why we flagged it
The bill's sole operative mechanism is to expand tax deductions available to employees for union dues and work-related expenses, reducing their taxable income and tax liability. This is a straightforward tax-code amendment benefiting workers.
What the text implies
- The bill does not specify what qualifies as 'unreimbursed expenses incurred in the trade or business of being an employee,' leaving interpretation to IRS guidance and potentially creating audit risk for workers claiming novel categories of expenses.
- Union members will see the largest immediate benefit; non-union workers claiming miscellaneous job expenses will also benefit, but the union-dues carve-out may signal legislative intent to prioritize union membership.
The full analysis lists 3 implications of this text.
Who stands to gain
workers and employees (wage earners); union members