Are bank and payment processing fees tax deductible?
Yes. Fees on a business bank account, what Stripe, Square or PayPal keep from each sale, and the annual fee on a card used for the business are deductible.
The rule
Monthly account fees, wire fees, and the percentage a payment processor keeps are costs of running the business. If a processor pays you net of fees, report the gross sale as income and the fee as an expense, so the 1099-K matches.
A card used only for the business has a deductible annual fee. On a card you also use personally, only a business share.
$87 of card processing fees for the month is deductible in full.
Priced at 36¢ on the dollar, the rate of a $95,000 sole proprietor in California. Work out yours.
- Where it goes
- Schedule C line 10, commissions and fees, or line 27a
- What to keep
- Statements from the bank and processor.
Checked on September 25, 2026 against Instructions for Schedule C. An estimate for your records, not tax advice.
By the kind of work
What else each of these can deduct, and what they tend to miss.
- Tax deductions for virtual assistants
- Tax deductions for translators
- Tax deductions for therapists in private practice
- Tax deductions for tutors
- Tax deductions for personal trainers
- Tax deductions for hair stylists and barbers
- Tax deductions for massage therapists
- Tax deductions for Etsy and handmade sellers
See it on every receipt.
Snap it and Reimburse files it on the right Schedule C line, takes the deductible share and shows what it puts back.