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 publication 526 (rev. 1998) defines 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. The only determination that you need to make is the amount that is more than the value of the benefits you receive. STC's tangible benefits can be estimated at $30 ($15 for the Society's quarterly journal, Technical Communication, and $15 for the magazine, Intercom). The difference between the cost of membership ($110) and tangible benefits ($30) is $80, and you may claim that amount as charitable contribution.

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

Miscellaneous Expense
Those who do not fall into the categories defined above may claim the amount of the dues as a miscellaneous deduction. (For miscellaneous deductions that can affect your taxes, the total amount of miscellaneous deductions must exceed 2 percent of your adjusted gross income.) If dues are deducted as a charitable expense, business expense, or miscellaneous expense, they must be deducted from the tax return filed for the year in which they were paid. In other words, dues paid in 2000 can be deducted only on 2000 tax returns. If you have any questions, contact your local IRS representative or an accountant.

Money, Not Time
The STC office has received a question concerning the deduction of time or services donated to STC. Please be aware that, while dues, contributions, and out-of-pocket expenses may be deducted, personal services cannot.

Reprinted with permission from the December 2000 issue of Tieline.