Checkmark iconCan I Write This Off?

Can you write off are credit card fees tax deductible?

TL;DR

Credit card fees can be deductible if they are incurred for business purposes.

Detailed Answer

Credit card fees are deductible when they are directly related to business expenses. For example, if a business incurs credit card fees on transactions made to purchase business supplies or services, these fees can be deducted as a business expense. However, personal credit card fees are not deductible. It is important to distinguish between personal and business expenses when claiming this deduction.

Where to Put It on the Tax Form

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

Real World Example

A freelance graphic designer pays a 3% fee on a $1,000 client payment processed through a credit card. The $30 fee is deductible as a business expense.

Calculation Required

A calculation is required for this deduction.

Calculate the total amount of credit card fees incurred for business transactions by summing up all the fees charged on business-related purchases.

Audit Risk & Documentation Tips

To minimize audit risk, keep detailed records of all credit card transactions, including receipts and statements that clearly show the business purpose of each transaction. Maintain a separate credit card for business expenses to simplify record-keeping and substantiation.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

Small BusinessFreelancersConsultantsRetailers

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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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