A message from President Donna S. Edwards………………
Dear Labor Leaders,
Today we are reminding you about “House Bill 2 – Income Tax – Subtraction Modification – Union
Dues.” Thanks to the labor movement’s hard work, we were able to pass this important bill that will
help restore a right that our members used to enjoy.
House Bill 2 allows all union members living in the state of Maryland to take a subtraction modification when
filing their Maryland state income taxes for their union dues. This used to be allowed in Maryland prior to
Trump’s Tax Cuts and Jobs Act of 2017 that removed our union dues deduction for federal income taxes. Since
Maryland’s tax code was written to default to whatever deductions were allowed at the federal level unless
otherwise specified. Hundreds of thousands of families lost their ability to claim legitimate expenses for
workers, like union dues, for subtractions on state taxes. But this unfair system ended on July 1st, 2023 when
HB 2 was enacted. Union workers in Maryland are now eligible to claim their union dues for subtraction
modifications starting for any tax year after December 31st, 2022.
We also encourage you to prepare communications to your membership letting them know about this
important change. As tax season approaches we will share social media graphics and sample letters
that you can use to communicate with your members.
HB 2 is also a reminder of what labor can achieve when we work together to push a common goal. As
we prepare for the 2024 legislative session we should remember the lessons we learned from our
campaign to win HB 2.