Final answer:
The CRA allows union dues to be deducted as before-tax deductions, unless the amount exceeds a certain limit.
Step-by-step explanation:
The CRA (Canada Revenue Agency) allows union dues to be treated as before-tax deductions, unless the amount exceeds a certain limit.
Currently, the limit for deducting union dues is 2% of an individual's employment income. This means that union dues can be deducted from your income before calculating your taxable income, as long as the total amount does not exceed 2% of your employment income.
For example, if your yearly employment income is $50,000, you can deduct up to $1,000 in union dues. However, if your union dues exceed $1,000, only the first $1,000 can be deducted as a before-tax deduction, and the rest will be considered as a regular deduction after calculating your taxable income.