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Credit Card Interest Deduction for Freelancers

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Top credit card related deductions for you

Finance charges

Any accrued interest is deductible.

Annual fees

You can write off your annual or monthly credit card fee when paying estimated quarterly taxes.

Late fees

If you fail to pay the monthly minimum payment due on your credit card, you can deduct the late fee charges from your self-employment taxes.

Merchant processing fees

Businesses can also deduct any credit or debit card processing expenses involved with paying their taxes. Merchant service fees are a tax-deductible cost of running your business.

Foreign transaction fees

Foreign transaction fees on your credit card are deductible from 1099 tax as long as the expense was made to serve your business.

ATM fees

Charges for checking accounts, ATM withdrawals, and other bank services related to your business are fully deductible.

Interest payments

As mentioned earlier, if you use your credit card to buy materials for your business, you can deduct the interest payments as a business expense.

Overdraft fees

Overdraft fees are deductible for a business since they are often considered as an operating expense.

Credit card interest tax deduction

Credit card interest typically isn’t tax-deductible for consumers. . However, if a credit card is used solely for business purposes, you can write off the interest as a tax deduction.

To make things easier, we recommend using a separate credit card for your business expenses. This simplifies the process of calculating the interest and it’ll also be easier to keep track of your receipts throughout the year.

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