Can I Write This Off?

Can you write off can you claim credit card fees on taxes?

TL;DR

Credit card fees are generally deductible as a business expense if they are incurred in the course of running a business. Personal credit card fees are not deductible.

Detailed Answer

Credit card fees, such as annual fees or transaction fees, can be deducted if they are directly related to business activities. For instance, if a small business owner uses a credit card to purchase supplies or pay for services, the associated fees are deductible as business expenses. However, fees incurred on personal credit cards for personal expenses are not deductible. It's important to distinguish between personal and business expenses, as only the latter qualifies for a deduction. Additionally, if a credit card is used for both personal and business purposes, only the portion of fees attributable to business use is deductible.

Where to Put It on the Tax Form

Schedule C, Line 27a

Real World Example

A freelance graphic designer uses a business credit card to purchase design software and pay for online advertising. The credit card charges a $95 annual fee and $50 in transaction fees for these purchases. The designer can deduct the full $145 as a business expense on Schedule C.

Audit Risk & Documentation Tips

Audit risk is moderate, as the IRS may scrutinize mixed-use credit cards. Keep detailed records of all transactions, including receipts and credit card statements, to clearly demonstrate the business purpose of each expense. Maintain a log if the card is used for both personal and business expenses, detailing the business-related transactions and associated fees.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersConsultantsSmall Business OwnersE-commerce

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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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