Etsy has a "payment processing fee" deducted from the total payment(including shipping) from customer. Does this qualify as a deductible?

[KatherineC]

Yes, this qualifies as a deduction.  It is similar to fees that banks charge to process credit card payments.  You can call it bank charges, payment processing fees, or any other reasonable description. 

To enter this expense:

• Log into your TurboTax return:
• Click on Federal
• Click on Income and Expenses
• Click the button beside your Self-Employment Info
  
• Under your income are the expenses.  If you need other categories click on “Add expenses for this work”
  
• Scroll to Less common expenses and click on the drop down
• Scroll all the way to the bottom of the screen and click on  "Other miscellaneous expenses"
• Click Continue
• Enter a description and the amount you were charged.  (See the screenshot below)
  
• Click Continue - this will bring you back to your (name of business) info
  

Please click here for further information.