Do I have to pay tax on my union benefits?

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;
	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;
	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;
	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;
	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;
	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.

Related tax information about union benefits

Tax Directory Topics:
Income Related Questions and Answers

IRS publications about union benefits:
For further tax information about union benefits see IRS Publication 17,

Your Federal Income Tax. Please read this IMPORTANT Editor's Note regarding navigating IRS publications with Adobe Acrobat Reader.
IRS publications can also be ordered by calling 1-800-829-3676.

Customer Support

Still have IRS or tax questions?
To view the alphabetical Master Index of all tax and IRS topics click here.

Ask Julian Block your IRS and tax questions!

If you can't find the answer to your IRS or tax question in our web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine.

To call Julian for a tax consultation click here.

Prepare your IRS tax return and State tax return online - If you'd like to e-file and/or print your IRS tax return or State tax return online click here.