Tax Fairness Act Proposes Deductions for Union Dues, Employee Business Expenses Starting After 2024

The Tax Fairness for Workers Act aims to amend the Internal Revenue Code, specifically targeting tax deductions for employees. If enacted, this legislation would allow employees to deduct union dues and certain other unreimbursed business expenses from their taxable income. These changes, outlined in Section 2, are slated to take effect for taxable years beginning after December 31, 2024.

Unpacking the Deductions

So, what's actually changing? The bill makes two key adjustments to the tax code:

1. Union Dues: It amends Section 62(a)(1) of the tax code to make union dues and related expenses an "above-the-line" deduction. In plain English, this means eligible employees could subtract these costs directly from their gross income to calculate their adjusted gross income (AGI), potentially lowering their overall tax bill without needing to itemize deductions for this specific expense.
2. Other Employee Expenses: The bill also tackles Section 67(g), which currently suspends the deduction for most miscellaneous itemized expenses, including unreimbursed employee business costs. This act would lift that suspension specifically for the trade or business expenses of being an employee. This could reopen the door for workers to deduct costs like necessary supplies, uniforms, or professional development fees not paid back by their employer, though these would likely still fall under itemized deductions, just without the current suspension.

Real-World Impact: Who Benefits?

These proposed changes directly affect workers who pay union dues or incur unreimbursed expenses as part of their job. For a union member, like a teacher or electrician paying several hundred dollars in annual dues, this bill could translate directly into tax savings starting with their 2025 tax return (filed in 2026). Similarly, an employee who has to purchase specialized tools or mandatory certifications for their job, without reimbursement, might find they can deduct these costs again. The primary effect is a potential reduction in the federal income tax burden for these specific groups of employees, potentially increasing their take-home pay or tax refund.