Union & Professional Dues Deduction Guide

Union Dues

Union dues are fully deductible if you're required to pay them as a condition of employment.

What Qualifies

• Annual membership dues to a trade union or association of public servants
• Dues to a parity or advisory committee required by provincial law
• Professional board levies required for certification

Where to Find the Amount

• Box 44 of your T4: Shows union dues deducted from pay
• Separate receipt: If not on T4, get receipt from union

Professional Membership Dues

Annual professional membership fees are deductible if membership is required to maintain a professional status recognized by law.

Examples of Deductible Professional Dues

• Accountants: CPA provincial body fees
• Lawyers: Law society fees
• Engineers: Professional engineers association
• Doctors: Provincial medical association
• Nurses: College of nurses fees
• Teachers: Teaching certification fees
• Real estate agents: Real estate board fees
• Pharmacists: College of pharmacists

Key Requirement

The membership must be required to maintain a professional status recognized by statute. Voluntary professional associations typically don't qualify.

What Doesn't Qualify

• Initiation fees: One-time joining fees are not deductible
• Special assessments: Levies for capital projects
• Pension contributions: Claimed separately
• Insurance premiums: Liability or malpractice insurance
• Voluntary memberships: Optional industry associations
• Licensing fees: Business licenses (self-employed claim differently)

How to Claim

Step 1: Gather Documentation

• T4 slip showing Box 44 amounts
• Receipts from professional bodies
• Proof of payment for dues not on T4

Step 2: Calculate Total

Add up all qualifying union dues and professional fees paid during the tax year.

Step 3: Report on Return

Enter total on Line 21200 of your T1 return.

T4 Box 44 vs. Separate Receipts

Shown on T4

If your employer deducts union dues from your pay, they'll appear in Box 44 of your T4. Simply transfer this amount to Line 21200.

Paid Directly

If you pay professional dues directly to the organization (not through your employer), you need a receipt showing:

• Organization name
• Your name as member
• Amount paid
• Period covered
• Date of payment

Self-Employed vs. Employees

Employees

• Claim on Line 21200
• Deduction from net income
• No need for T2200 form

Self-Employed

• Claim as business expense on T2125
• Can also deduct liability insurance
• Include in professional fees category

Common Professions and Dues

Timing Considerations

• Claim in year paid: Deduct dues in the year you actually paid them
• Prepaid dues: If you pay 2025 dues in December 2024, claim in 2024
• Arrears: Past-year dues paid this year are deductible now

Documentation Requirements

Keep these records for 6 years:

• T4 slips showing Box 44
• Official receipts from professional bodies
• Bank statements or credit card receipts as backup
• Proof membership is required for your position

Example Scenario

Sarah is a registered nurse and union member:

• Union dues (Box 44 on T4): $780
• College of Nurses annual fee: $265
• Total Line 21200 deduction: $1,045

At a 30% marginal tax rate, this saves Sarah about $314 in taxes.

Common Mistakes to Avoid

• Claiming voluntary memberships: Only statutory requirements qualify
• Double-counting T4 amounts: Don't claim twice if on T4
• Including insurance: Employees can't deduct professional liability insurance
• Missing direct payments: Don't forget dues paid outside payroll
• Claiming initiation fees: One-time fees don't qualify