The Canada Revenue Agency allows union dues to be deducted from income before tax calculated unless the amount is for:

• A. Deductions for initiation fees
• B. Deductions for special purpose fees
• C. Deductions for benefits
• D. Deductions for initiation fees, special purpose fees or fees for benefits are not allowed as a before-tax deduction

Answer: (D)

The key idea is that union dues are generally deductible from gross income before tax only when they relate to maintaining membership that’s needed to earn employment income. However, certain parts of those dues are not allowed to be deducted pre-tax. Initiation fees are not deductible before tax because they’re a one-time joining cost rather than an ongoing expense tied to earning income. Special purpose fees aren’t deductible before tax because they fund specific activities or assessments that aren’t directly connected to earning your wages. Fees for benefits aren’t deductible before tax because they cover personal benefits rather than services needed to perform the job. So, any amount that falls into initiation fees, special purpose fees, or fees for benefits cannot be claimed as a before-tax deduction.