Hi Donald,
Hope you are doing well and surviving!!
We do a lot of union employees here and use proseries.
My understanding is that union dues are first to be entered as an employee business expense subject to the 2% limitation. Whatever amount is not used in that section is then taken as an adjustment on line 44, then line 4, item K. Here is the calculation for the Union dues with or without other 2% miscellaneous deductions. (I only provide them because I know proseries does not do the calculation.
K Amount of disallowed union dues included on the Unreimbursed employee business expenses worksheet, line 4, that were subject to the 2% miscellaneous itemized deduction floor.
If you did not deduct any union dues as a miscellaneous itemized deduction on your New York State tax return due to the application of the 2% floor, the amount of the modification is the full amount of union dues paid during the tax year.
If you deducted a portion of union dues as a miscellaneous itemized deduction on line 21, the amount of the modification is a percentage of the union dues disallowed due to the 2% floor, computed as follows:
union dues paid x 1 – miscellaneous itemized deductions after 2% limitation applied (Form IT-196, line 28)/ total miscellaneous itemized deductions subject to the 2% limitation (Form IT-196, line 25)
Example: Pat pays $1,628 of union dues eligible under IRC §162. Pat has FAGI of $28,000. Pat has total miscellaneous itemized deductions in the amount of $1,850 and is allowed $1,290 in miscellaneous itemized deductions on their New York State tax return after application of the 2% floor. Pat can claim an additional $493 in itemized deductions computed as follows:
Step 1: $1,290 ÷ $1,850 = .6973
Step 2: 1 − .6973 = .3027
Step 3: $1,628 × .3027 = $493
This is per the NYS instructions but you are probably right it, it is just easier to enter it straight on to line 44.
I guess I need sleep...
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Lynne Fuentes BA
FUENTES & ANGEL CPAs LLC
Jericho NY
516-622-3045
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Original Message:
Sent: 04-05-2019 15:05
From: Donald Ingram
Subject: NYS DEDUCTION FOR UNION DUES
if you are using ProSeries tax program, you can deduct Union Dues on the IT-196 line 44 that was no longer allowed on the 2106.
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Donald Ingram
CPA
DONALD INGRAM, CPA
Woodbury NY
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