Payment processing fees

sunprincess831 · ‎March 28, 2020

I have my own business where I am a virtual assistant for a real estate agent. She has always paid me by check, but I have taken on a new agent and she has asked about paying me via PayPal or through the website I use for sending invoices. Both PayPal and the invoicing site I use charge a fee to receive payments. I am curious if that fee for receiving payment would be tax deductible? I don’t want to loose out on my pay, but I would like to make it as easy to pay me as possible.

KatrinaB48 · ‎March 29, 2020

Yes, the processing fee paid to Pay Pal can be deducted from the income you receive. It will be reported on your schedule c as a bank fee under miscellaneous expenses.

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KatrinaB48 · ‎March 29, 2020

Yes, the processing fee paid to Pay Pal can be deducted from the income you receive. It will be reported on your schedule c as a bank fee under miscellaneous expenses.

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sunprincess831 · ‎March 31, 2020

Awesome, thank you for the help!

tweety4340 · ‎March 31, 2020

Can you prepay your processing fees in advance before filing

EbonyL122824 · ‎March 31, 2020

@tweety4340 Yes, you can pay your TurboTax fees in advance. See the link below for instructions.

https://ttlc.intuit.com/community/payments/help/how-can-i-pay-for-my-turbotax-online-fees/00/27388

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Payment processing fees