Is are stripe fees tax deductible a valid tax write-off?
TL;DR
Yes, Stripe fees are generally tax deductible as a business expense, provided they are directly related to the operation of your business and not reimbursed by clients.
Detailed Answer
Where to Put It on the Tax Form
Schedule C, Line 27a (Other expenses)
Real World Example
A freelance web developer earns $50,000 in a year and pays $1,500 in Stripe fees for processing client payments. The developer can deduct the $1,500 as a business expense on Schedule C, reducing the taxable income to $48,500.
Audit Risk & Documentation Tips
Audit risk for deducting Stripe fees is generally low, but maintaining clear records is crucial. Keep detailed statements from Stripe showing the fees charged, along with corresponding invoices and client payment records. Ensure that the fees are not reimbursed by clients and are solely business-related.
IRS Reference
IRS Publication 535, Business Expenses
Relevant Industries
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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 25, 2025