Legislation Search

H.R. 2671: Tax Fairness for Workers Act

The "Tax Fairness for Workers Act" (H.R. 2671) aims to amend the Internal Revenue Code to provide certain tax benefits for employees related to union dues and other business-related expenses they incur. Below are the main provisions of the bill:

1. Deduction for Union Dues

The bill seeks to allow employees to take an "above-the-line" deduction for union dues and related expenses. This means that employees who pay dues to a union can deduct those expenses from their taxable income directly, even if they do not itemize their deductions. This change is intended to ease the financial burden on union members by reducing their overall taxable income.

2. Miscellaneous Itemized Deduction for Employee Expenses

Besides union dues, the bill also proposes to permit employees to claim a miscellaneous itemized deduction for any unreimbursed expenses related to their job. This encompasses costs that employees incur in the course of performing their duties that are not reimbursed by their employer. It aims to provide financial relief for employees who may need to purchase supplies, pay for travel, or cover other work-related expenses that are necessary for their employment.

3. Changes to Existing Tax Law

The proposed legislation amends certain sections of the tax code to eliminate limitations on these deductions. Specifically, it modifies:

Section 62(a)(1): This section of the tax code is updated to specify that the limitations placed on certain deductions do not apply to those associated with union dues and expenses.
Section 67(g): This section is modified to allow miscellaneous itemized deductions for employees' unreimbursed expenses related to their trade or business as employees, thereby removing a prior limitation that had been in place.

4. Effective Date

The changes proposed in the bill would apply to tax years beginning after December 31, 2024. This means that employees would be able to take advantage of these deductions for their tax filings starting in 2025.