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Can I deduct are stripe fees tax deductible?

TL;DR

Yes, Stripe fees are generally tax deductible as a business expense.

Detailed Answer

Stripe fees can be deducted as a business expense on your tax return because they are considered ordinary and necessary expenses incurred in the course of running a business. These fees are similar to other payment processing fees, like those from PayPal or credit card processors. However, they must be directly related to business transactions. For example, if you use Stripe to process payments for personal transactions, those fees would not be deductible.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 27a for sole proprietors or as a business expense on the relevant line for other entities.

Real World Example

A freelance graphic designer uses Stripe to process payments from clients. The designer incurs $500 in Stripe fees over the tax year. These fees are recorded as a business expense on Schedule C, reducing the designer's taxable income.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, sum all the Stripe fees incurred during the tax year that are directly related to business transactions.

Audit Risk & Documentation Tips

Keep detailed records of all transactions processed through Stripe, including invoices and bank statements showing the fees. Maintain a clear separation between business and personal transactions to avoid issues during an audit.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

E-commerceFreelancersSmall BusinessOnline Retailers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 15, 2025

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