Do I have to pay tax on my union benefits?
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Generally, yes, you
have to pay tax to the IRS on your union benefits. Review the six situations below:
 | Union benefits paid to you as an unemployed member of a union out of regular union dues are
taxable on your tax return and included in gross income on Line 21 of
Form 1040;
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| Unemployment benefits received from a union or private fund to which you
contribute are taxable on your tax return only to the extent that your union benefits exceed your contributions to
the union or private fund. Report this income on Line 21 of Form 1040;
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| Payments you receive from your employer during periods of unemployment, under a union
agreement that guarantees you full pay during the tax year, are taxable as
wages and must be reported on your tax return;
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| Amounts deducted from your pay for union dues, assessments, contributions, or other
payments to a union cannot be excluded from your salary or wages. You must include them in
taxable income as wages on your tax return;
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| You may be able to deduct some of these payments as a miscellaneous itemized
tax deduction on your tax return subject to the 2% AGI floor if they are related to your job and you itemize your
tax deductions on Schedule A of Form 1040;
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| Union benefits paid to you by a union from union dues as strike or lockout
union benefits, including
both cash and the fair market value of other property, are usually included in your
taxable income
as wages on your tax return. You can exclude these union benefits from your
taxable income on your tax return only when the facts show that
the union intended them as gifts to you. |
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Related tax
information about union benefits |
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| Income Related Questions and Answers |
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IRS publications about union benefits:
For further tax information about union benefits see
IRS Publication 17,
Your Federal Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
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