Can I Deduct My Membership Dues on My Taxes?
Knowing how to find those little tax deductions can make the difference between a big tax bill or a nice refund check. When looking at deducting your membership dues, the answer is not straightforward. However, with some careful research, keeping track of those dues could save you money.
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Country Club Dues and the Like
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The IRS disallows personal expenses as deductions. So if you are a member of a country club or other social organization, you cannot deduct the dues you pay on your tax return.
Professional Dues and Subscriptions
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If you pay membership dues to professional organizations out of your own pocket, these are tax deductible (see your Form 1040, Schedule A, Line 21). So, if you are a lawyer and pay your own bar association fees, those are deductible. Also, if you subscribe to a professional publication, you may deduct the cost of that subscription on your taxes.
But this area gets a little complicated. Line 21 is in the "Job Expenses and Certain Miscellaneous Deductions" section of the Schedule A. That being the case, the total of all the items in this section has to be greater than 2 percent of your adjusted gross income (which is line 38 on a 1040). For example, if your adjusted gross income (AGI) from Page 1 of your 1040 is $50,000, then the total on line 24 of your Schedule A has to be greater than $1,000 ($50,000 x .02). Otherwise, you can't deduct any of these dues.
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Gym Memberships
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A gym membership is deductible under certain circumstances. If a doctor has diagnosed you with a disease and prescribes exercise to treat it, then a gym membership could be deducted as a medical expense on Schedule A (Line 1). The diseases that are allowable include obesity. Again, there is a catch. Just like with the professional dues, total medical expenses have to be greater than a percentage of your AGI. In this case, that is 7.5 percent. If your AGI is $50,000, then your total medical expenses would have to exceed $3,750 ($50,000 x .075). Most likely, you would have to have some other deductible medical expenses in order for the gym membership to make a difference on your tax bill.
Museum Memberships
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Museum memberships may also be deductible. If the membership is $75 or less, then it is fully tax deductible under the Charitable Contributions section of Schedule A (line 16). However, if the membership is more than $75, then you have to allocate what part is for goods and services you receive (such as free or discounted access to the museum) and what part is a charitable contribution. You will have to request this information from the museum (e.g., what the fair market value is of the goods and services you received and what the charitable contribution value is). Charitable contributions are not limited by a percentage of your AGI.
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