Which credit card fees are tax deductible?

Morris Armstrong, Enrolled Agent
Armstrong Financial Strategies, Cheshire, CT

If you are an individual and not a business owner, then the short answer is there are no tax deductions, unless you were charged a fee to pay your taxes with your debit/credit card. That is the 2% or 3% fee imposed by the accepting agency for processing that payment. In order to deduct that fee, you must itemize your return and it would be added to all of the miscellaneous expenses that are subject to a 2% threshold. This means that if your adjusted gross income is $50,000 and you have $1,050 in eligible miscellaneous expenses, you may get the tax benefit on $50. You may not deduct annual fees, late charges, or interest paid if you are an individual. If you are a business, then you may be able to deduct these charges.

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