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Important Note: The following text is presented as useful information only and should not be construed as tax advice. Consult your tax advisor to determine its applicability.
STC members who pay taxes in the United States should be aware that Society dues may be tax deductible. Members can often claim dues as a deduction in one of several ways: as a charitable expense, a business expense, or a miscellaneous deduction.
All STC members who pay taxes in the United States may be eligible to 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.”
STC is a qualified 501(c)(3) 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 paid. STC's tangible benefits are estimated at $45 per year, the amount designated as the member subscription rate for STC publications: $22.50 for the Society's quarterly journal Technical Communication, and $22.50 for the monthly magazine Intercom.
The amount of charitable contribution you may claim may be affected by STC's prorated dues system (for those joining mid-year), as well as the different membership categories and rates. When calculating the amount to be designated as a charitable contribution, consider the following factors:
If you pay your dues by 31 December, you may claim a deduction for the tax return filed for the year in which they were paid. In other words, dues paid in 2008 may be deducted only on 2008 tax returns. Therefore, if you pay your 2009 dues on or before 31 December 2008, these dues can be deducted only on your 2008 return. Members with questions should contact their local IRS office or their tax advisor.
Employers and self-employed consultants may claim the full amount of dues as a business expense.
In rare cases, members who do not fall into the categories defined above may claim the full 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.)
Members may also deduct contributions (i.e., contributions to scholarship funds) and out-of-pocket expenses incurred while volunteering, but the dollar value of volunteered personal services may not.
Unless otherwise informed by your tax advisor, you cannot claim your STC dues as a tax deduction if your employer (or other third party) pays your dues.
If you are self-employed, please consult with your tax advisor as to whether your dues should be claimed on your personal tax forms or those of your business.
Some of the information below is from “The Economics of STC Membership: For Everything Else, There’s Mastercard,” an article written by Geoffrey J. S. Hart, Associate Fellow of the Montreal Chapter STC, for the February 2005 Tieline.
STC membership fees are generally deductible from your income tax, particularly for freelancers. In many jurisdictions including Quebec, STC membership fees may qualify as an educational expense.
According to Hart, tax deductions depend on how much you paid for your specific category of membership and how you are declaring the expense. Many jurisdictions allow freelancers to include one professional association membership in their eligible expenses, in which case the entire amount of your membership expenditure is an eligible deduction.
Hart also notes that membership may qualify as an educational expense, whether as a personal or a company one. “In Quebec, for instance, companies are required to spend a certain minimum percentage of their gross budget on training, and STC membership qualifies,” he explains.
According to Hart, another possible way that both U.S. and non-U.S. members can deduct their dues is by writing off the cost of all purchased STC publications under the “books and publications” expense category on their tax forms. Doing so allows members to write off the costs of Technical Communication, Intercom, and community newsletters.
If you would like additional information about the tax benefits you may be able to receive as a result of STC membership, whether you live in one of these areas or elsewhere, please contact your local tax department or speak to a tax attorney.
Most countries offer similar forms of tax deduction to their citizens. Please contact your tax department to ask what deductions may be applicable.