Membership Dues Associated with Trade Associations and Business Leagues Are Deductible as an Ordinary and Necessary Business Expense
Membership Dues Associated with Trade Associations and Business Leagues Are Deductible as an Ordinary and Necessary Business Expense
Did you know that Massachusetts Chiropractic Society (MCS) professional dues are highly deductible? As a business owner, whether you are a sole proprietor or operating under a business entity, the IRS allows you to deduct costs associated with running your business. This includes professional association dues like those for the MCS!
What Can Be Deducted?
To qualify, expenses must meet the IRS criteria for being both “ordinary” and “necessary”:
- Ordinary expenses: Common and accepted in your industry (IRS Publication 535, Business Expenses).
- Necessary expenses: Helpful and appropriate for your trade or business. These do not have to be indispensable to qualify as necessary.
What Cannot Be Deducted?
MCS takes pride in its lobbying efforts to support chiropractic care in Massachusetts. However, any portion of membership dues used for lobbying or political activities is not deductible. For MCS dues, 20% is allocated for such activities, meaning 80% of your dues can still be deducted.
Maximize Your Deductions
For dues paid by December 31, 2024, you may claim 80% of the total amount, even if they apply to your 2025 membership.
Non-Members: Join the MCS Now!
If you’re not yet a member, now is the perfect time to join and enjoy the benefits of membership while taking advantage of the tax deduction. MCS members gain access to resources, networking opportunities, and the support of Massachusetts chiropractic society.
Additional Tax Deduction Tips
- Professional dues apply as miscellaneous deductions. Ensure they are accurately recorded in your tax filings:
- Sole proprietors/single-member LLCs: Report under “Other Expenses” on Schedule C.
- Partnerships/multiple-member LLCs: Use the “Deductions” section of Form 1065.
- Corporations: Include in the “Deductions” section of Form 1120.
- Always maintain receipts and adequate records for audit purposes.
- Consider consulting with a tax preparer to ensure compliance and maximize your deductions.
Disclaimer
This information is for general guidance only and does not constitute legal, tax, or accounting advice. Consult a qualified professional for advice tailored to your specific circumstances.
For questions about membership or upgrading your MCS status, contact the Massachusetts Chiropractic Society at
