U.S. Members: Deduct Your STC Dues

(Reprinted from the November 2005 issue of Tielines, an STC publication.)

If you pay taxes in the United States, keep in mind that STC dues are tax deductible. Please note, however, that dues must be deducted from the tax return filed for the year in which they were paid. In other words, dues paid in 2005 may be deducted only from 2005 tax returns. Therefore, if you pay your 2006 dues on or before December 31, 2005, these dues can be deducted only from your 2005 return. Members who have questions should contact their local IRS office or their accountant.

You can claim dues as a deduction in several ways: as a charitable expense, a business expense, or a miscellaneous deduction.

Charitable Expense

All STC members who pay taxes in the United States can deduct at least a portion of their STC dues if they claim this portion as a charitable donation. IRS publications 526 (rev. 2003) and 17 define this option:

You may be able to deduct membership fees or dues you pay to a qualified organization. However, you can deduct only the amount that is more than the value of the benefits you receive.

As a 501(c)(3) organization, STC is a qualified organization. To determine the amount of charitable contribution you may claim, subtract the cost of tangible benefits you receive from STC from the amount of dues you paid in 2005. STC's tangible benefits can be estimated at $30 per year: $15 for the Society's quarterly journal, Technical Communication, and $15 for the magazine, Intercom. The amount of dues you paid depends on your membership category. Classic members and limited members determine their charitable contribution by subtracting the cost of tangible benefits ($30) from the cost of dues for 2005 ($145 for classic members, $125 for limited members). Because student members and e-members do not receive printed versions of Technical Communication or Intercom, they do not receive tangible benefits, and may deduct the full amount of dues for 2005: $135 for e-members and $50 for student members.

Tables 1 and 2 will help most members determine their charitable contribution. Please note: If you received prorated credit from STC toward your dues, your dues and charitable contribution will differ from the amounts listed below.

Table 1.

Charitable Contributions for 2005 STC Dues
Membership Category 2005 Dues
Tangible
Benefits
Charitable Contribution
Classic
$145.00
$30.00
$115.00
E-membership
135.00
0
135.00
Limited
125.00
30.00
95.00
Retired
72.50
30.00
42.50
Student
50.00
0
50.00


Table 2.

Charitable Contributions for 2006 STC Dues
Membership Category 2006 Dues
Tangible
Benefits
Charitable Contribution
Classic
$150.00
$30.00
$120.00
E-membership
140.00
0
140.00
Limited
130.00
30.00
100.00
Retired
75.00
30.00
45.00
Student
55.00
0
55.00

Business Expense

Employers and self-employed consultants may claim the full amount of dues as a business expense.

Miscellaneous Deduction

Those who do not fall into the categories defined above may claim the amount of dues as a miscellaneous deduction. (For miscellaneous deductions to affect taxes, the total amount of miscellaneous deductions must exceed 2 percent of your adjusted gross income.)

Money, Not Time

Please be aware that while dues, contributions, and out-of-pocket expenses may be deducted, personal services may not.