Can I Write This Off?

How do I deduct can you claim credit card fees on taxes on my taxes?

TL;DR

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

Detailed Answer

Credit card fees, such as annual fees or transaction fees, can be deducted if they are directly related to business expenses. For example, if you use a credit card to purchase supplies for your business, the associated fees can be deducted as a business expense. However, personal credit card fees are not deductible. It's important to separate personal and business expenses to ensure accurate deductions.

Where to Put It on the Tax Form

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

Real World Example

A freelance graphic designer uses a credit card to purchase design software and pays a transaction fee. The transaction fee is deductible as a business expense on their Schedule C.

Audit Risk & Documentation Tips

To minimize audit risk, maintain clear records of all credit card statements and receipts showing the business nature of the expenses. Keep detailed logs of how each fee relates to business activities.

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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