Can you write off merchant fees

In addition, there is no shame in hiring a financial consultant to assist you in getting all of the tax deductions to which you are entitled. Keeping financial matters in order is just as important as hiring competent staff and providing first-class customer service and products. Maximize your chances of a smooth and uncomplicated tax season by keeping organized and accurate records and hire outside help if necessary.

Before you know it, you will be back to doing what you do best: growing your business. Contact Us Today. Visit us online at www. Home Referral Partners Tailored Tips. Contact Us Today Visit us online at www. The Form K will list any federal and state tax withholdings, but it will not list the merchant fees you paid to the credit card processor. Your company will have to use its independent record of the fees to file for a tax deduction.

Sometimes, the gross income on your Form K can be deceiving. If you allow your customers to use debit cards to receive cash back , this money will be reported as gross income on your Form K.

You do not have to report this money as income, but your company must keep records identifying this money as cash back to a customer. Depending on when you receive your Form K, your gross income may count transactions that later became chargebacks and refunds. Therefore, verify your Form K and merchant fee records simultaneously to ensure accuracy. Then you can confidently forward this information to your accountant during tax time.

If you are in the market for a new credit card processing service, we are here to help. Final Thoughts Credit card processing fees are not the end of the world. Amanda Abella Amanda Abella is a Millennial Finance Expert that helps people understand their finances and eliminate all bad debt. She wrote a book, Make Money Your Honey. It is a powerful guide on how to have a better relationship with work and money.

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