Tax Fairness for Workers Act

Summary

Allows employees to deduct certain job-related trade-or-business expenses — including union dues and expenses — as above-the-line reductions to gross income and removes those employee trade-or-business expenses from the 2%-of-AGI miscellaneous itemized deduction floor. The change applies to taxable years beginning after December 31, 2024, so affected taxpayers would claim these deductions on returns for 2025 and later (unless accelerated by other rules).

• Allows employees to claim certain trade-or-business expenses as above-the-line deductions, lowering adjusted gross income.
• Specifically permits union dues and union-related expenses to be deducted above the line when attributable to performing services as an employee.
• Excludes employee trade-or-business itemized deductions from the 2%-of-AGI miscellaneous itemized deduction limitation.
• Effective for taxable years beginning after December 31, 2024 (generally returns filed for 2025 and later).
• Targets employee expenses (not self-employment Schedule C business expenses).
• Increases recordkeeping and documentation requirements for taxpayers and tax preparers to substantiate qualifying employee expenses.
• Likely reduces federal revenue because it expands deductible amounts, though no cost estimates or offsets are included in the text.