Firefighter Tax Deductions California Still Allows

Your union dues, unreimbursed gear, and EMT recertification costs are not deductible on your federal return, and that's now permanent. But California never followed the federal rule, so those same expenses still deduct on your state return through Schedule CA, subject to a 2% of AGI floor. Most firefighters either don't know this split exists or assume one return's rules apply to both. Here's exactly how it works, with the math.

This is education, not tax, legal, or investment advice. Tax law changes and your situation is specific. Confirm anything here with a licensed CPA or advisor before acting.

The federal door is closed, permanently

The 2017 tax law suspended miscellaneous itemized deductions subject to the 2% floor, which is the category union dues, uniforms, and job education lived in. That suspension was scheduled to expire, and OBBBA made it permanent (per the federal 2026 rules, with only a narrow carve-out for educators). So on your federal return, in 2026 and going forward:

• Union dues: not deductible.
• Unreimbursed gear, boots, station wear your department doesn't cover: not deductible.
• EMT or paramedic recertification fees you pay yourself: not deductible.

If a preparer puts these on your federal Schedule A, that's an error. There's no waiting it out; the law no longer sunsets.

The California door is open: Schedule CA, Part II

California never conformed to that suspension, and the FTB's own form text proves it. The Schedule CA (540) instructions, Part II, keep the old federal structure alive for state purposes:

• Line 19, unreimbursed employee expenses. The form text lists "job travel, union dues, job education, etc." (attach Form 2106 if required). This is where dues, gear, and recert costs go.
• Line 20, tax preparation fees.
• Line 21, other expenses.
• Line 22, the subtotal of lines 19 through 21.
• Line 24, the floor: 2% of your federal AGI.
• Line 25, the payoff: only the amount above the floor deducts.

You'll see websites claim California doesn't allow union dues. They're wrong; the FTB form text controls. Dues are deductible on the California return if you itemize for California and clear the floor.

The 2% floor math, with real numbers

The floor is the catch, so run it before you count the money. The floor is 2% of your federal AGI, and only expenses above it deduct.

Take a firefighter with $150,000 of AGI. The floor is $3,000. If union dues, gear, and recert costs total $2,800, the deduction is zero. If they total $4,500, only $1,500 deducts, and at a 9.3% California marginal rate that's worth about $140 in actual tax. Real, not life-changing.

The floor math means this deduction rewards two groups: firefighters with lower AGI years (the floor is smaller) and firefighters with genuinely large unreimbursed costs in one year (academy gear-up, out-of-pocket education, a big equipment year). It also stacks with tax prep fees and other qualifying items, which helps clear the floor. Track everything; decide at filing.

Why many firefighters itemize for California but not federally

Here's the piece that surprises people: your federal and California itemizing decisions are independent, and they often come out differently.

The 2026 federal standard deduction is $16,100 single and $32,200 married filing jointly (per Rev. Proc. 2025-32). That's a high bar; plenty of firefighters take it.

California's standard deduction is tiny by comparison: $5,706 single and $11,412 married filing jointly for 2025 (per the FTB). A California homeowner's property tax and mortgage interest alone usually blow past that. So the common pattern for a firefighter homeowner is: standard deduction federally, itemize for California. And once you're itemizing for California anyway, the Schedule CA employee expenses ride along, needing only to clear the 2% floor to add value.

If you rent and have modest expenses, the California standard deduction may still win. Run both; good software or a CPA does this automatically.

The SALT cap in 2026, for homeowners

One more 2026 federal change matters to California firefighter homeowners who do itemize federally: the state and local tax deduction cap rose to $40,400 for 2026 ($20,200 married filing separately), up from the old $10,000 (per 26 U.S.C. 164(b)(6), as amended by OBBBA). For a California household paying high state income tax plus property tax, that can flip the federal itemize-or-standard decision back toward itemizing.

Caveats: the cap is reduced by 30% of MAGI above $505,000 (never below a $10,000 floor), so it's intact for nearly all firefighter households, and the whole enhancement reverts to $10,000 in 2030 as of current law. The $505,000 threshold and the $10,000 floor are both set in the statute, so the cap stays intact for nearly every firefighter household.

The HSA warning

If you contribute to an HSA, California treats it nothing like the IRS does. HSA contributions are not deductible on the California return, employer HSA contributions are added back to your California wages, and the account's earnings are taxable to California each year, all handled as Schedule CA adjustments (per FTB Pub 1001). The HSA is still worth having for the federal breaks. Just don't double-count savings California never agreed to, and make sure your preparer does the CA add-back correctly, because payroll systems won't do it for you.

Labor Code 4850 pay is tax-free

If you're injured on the job, California Labor Code 4850 entitles city and county firefighters (and listed safety members) to leave at full salary, in lieu of temporary disability, for up to one year. That pay is excluded from gross income for both federal tax (IRC 104(a)(1), as payment in the nature of workers' compensation) and California tax. No income tax should be withheld from it, while normal deductions like pension contributions continue.

Check your W-2 in a 4850 year: that pay shouldn't be in taxable wages. If it was included, that's a payroll correction and possibly an amended return, and worth a CPA conversation. Disability retirement has its own partial exclusion, covered in retired firefighter tax breaks and how your pension is taxed.

What to keep records of

The California deduction only pays if you can substantiate it. A simple folder (paper or phone) with:

• Union dues: your annual total from paystubs or the local's year-end statement.
• Gear and equipment: receipts for anything required for the job and not reimbursed (boots, flashlights, station wear, tools). Reimbursed items don't count.
• Education and certifications: EMT/paramedic recert fees, required course costs, licensing fees you paid personally.
• Tax prep fees: deductible on the CA return too (Schedule CA line 20).
• Mileage between work sites if your assignment requires it (commuting doesn't count); log it contemporaneously.
• If you run a side gig, keep that recordkeeping fully separate; those expenses belong on Schedule C, not here (see side business taxes for firefighters).

Whether any specific item qualifies varies by situation, so run edge cases past your CPA rather than guessing.

FAQ

Can California firefighters deduct union dues?

Yes, on the California return only, via Schedule CA Part II (the form text explicitly lists union dues), if you itemize for California and only to the extent your total unreimbursed employee expenses exceed 2% of your federal AGI. Federally, no; that suspension is now permanent.

Can I deduct my boots, uniforms, or gear?

Not federally. On the California return, unreimbursed required gear goes into the same Schedule CA bucket as union dues, subject to the same 2% floor. Anything your department reimburses doesn't count.

Are EMT recertification fees deductible?

Same split: not on the federal return, but they qualify as job education/employee expenses on Schedule CA for California, subject to the 2% of AGI floor.

Should I itemize for California if I take the federal standard deduction?

Very possibly. The decisions are independent, and California's standard deduction is only $5,706 single / $11,412 MFJ (2025 figures, per the FTB), a fraction of the federal amount. Many California homeowners itemize for state purposes while taking the federal standard deduction.

Is my 4850 injury pay taxable?

No. Labor Code 4850 salary continuation is excluded from income for both federal (IRC 104(a)(1)) and California tax. Verify your W-2 handled it correctly in any year you were on 4850 leave.

What this actually means for you

The deductions in this article won't transform your tax bill; the floor sees to that. But they're free money for anyone already paying dues and buying gear, they reward the simple habit of keeping receipts, and knowing the federal-versus-California split marks you as someone a sloppy preparer can't shortchange. For the levers that actually move the needle, start with the hub, how California firefighters actually reduce their taxes, and see why the 457(b) beats everything on this page combined. Join the newsletter for the rest of the money section as it publishes.

Sources

• FTB Schedule CA (540) instructions, Part II (lines 19-25: unreimbursed employee expenses, union dues, 2% AGI floor)
• Federal 2026 rules under OBBBA (permanent suspension of 2%-floor miscellaneous itemized deductions)
• Rev. Proc. 2025-32 (2026 federal standard deduction $16,100/$32,200)
• FTB standard deduction figures ($5,706 single / $11,412 MFJ for 2025)
• FTB Pub 1001 (California HSA nonconformity and Schedule CA adjustments)
• Cal. Labor Code 4850 and IRC 104(a)(1) (salary continuation excluded from income, federal and CA)

Golden State Firefighter is not affiliated with any government agency, department, or retirement system.