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New Member
posted Jun 6, 2019 11:00:14 AM

For people who are filing self employed, Can you report credit card payments (no interest) as an expense? If so, what category of expenses would that go under?

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1 Best answer
Level 13
Jun 6, 2019 11:00:15 AM

Are you talking about the payments you make on a credit card to pay off some or all of the balance? For example, you have $1,000 charged on the card, and you are sending $250 to pay it down?

If so, then, no, this is not what you deduct.

Instead, you should deduct the items that you bought with the credit card: stationary, business cards, fuel, telephone bill, etc. And you deduct them in the year in which you "bought" them, even if you paid for the items over the span of a couple of years.

Any interest incurred on the credit card for business purchases would be deductible - this is why it is really a good idea to have a separate checking account and credit card for your business so that there is no confusion over what interest is personal and what is business.

3 Replies
Level 13
Jun 6, 2019 11:00:15 AM

Are you talking about the payments you make on a credit card to pay off some or all of the balance? For example, you have $1,000 charged on the card, and you are sending $250 to pay it down?

If so, then, no, this is not what you deduct.

Instead, you should deduct the items that you bought with the credit card: stationary, business cards, fuel, telephone bill, etc. And you deduct them in the year in which you "bought" them, even if you paid for the items over the span of a couple of years.

Any interest incurred on the credit card for business purchases would be deductible - this is why it is really a good idea to have a separate checking account and credit card for your business so that there is no confusion over what interest is personal and what is business.

New Member
Jun 6, 2019 11:00:18 AM

That's what I was thinking, to report credit card purchases made within that year even if I was still making payments into the following year. Thank you for your help. 

New Member
Jan 6, 2020 9:26:19 PM

Question: business materials are bought on credit card. credit card purchase gets tagged as business expense, "materials and expenses." What do the payments toward said credit card get tagged as? Personal ?  Or should it be marked "exclude transaction" I'm using quickbooks self employed and totally appreciate any and all help . Thank you