UNION & PROFESSIONAL DUES

Line 21200 allows a deduction for annual dues paid to a trade union, a professional body or a parity or advisory committee, where the dues relate to employment or to maintaining a professional status recognised by law.

WHAT QUALIFIES

• Union dues, usually shown in box 44 of the T4 or on a union receipt.

• Annual membership dues to maintain a professional status required by law, such as for nurses, engineers, accountants, lawyers or teachers, even if the employee's job does not require the status.

• Professional or malpractice liability insurance premiums required to maintain a professional status.

• Dues to a public service association.

WHAT DOES NOT QUALIFY

• Initiation fees, entrance fees and licensing examination fees (exam fees may qualify for the tuition credit instead).

• Special assessments, pension plan or insurance components of the dues (other than required professional liability insurance).

• Amounts reimbursed by the employer.

• Voluntary memberships in associations that are not required to maintain a professional status.

SELF-EMPLOYED PROFESSIONALS

Self-employed professionals deduct dues as a business expense on Form T2125 instead of line 21200.

GST/HST REBATE

Employees who deduct union or professional dues that included GST or HST, and whose employer is a GST/HST registrant, may be able to claim the GST/HST rebate on Form GST370, reported on line 45700.