When It Comes To Payments What Is More Important: Security Or Convenience?
March 17, 2020Worst Passwords of 2019 and the 2010s
March 31, 2020Tax season is here. For some merchants they love this time of year trying to maximize every deduction and limit the amount of money that they have to pay to the government. Others dread this time of year. If you are the latter are you maximizing your deductions, particularly your credit card processing fees?
More Capital, Better Chance Of Staying In Business
There are a lot of businesses that fail in the first year and 20% of them fail due to a lack of capital. For those businesses (or even any others for that matter) there are opportunities to save some money this time of year and hopefully your accountant has brought this up. Did you know that most credit card processing fees are tax deductible?
You may have avoided this in the past or are not looking forward to doing this as images of you sitting at your desk with your accountant visor on going through all of your paperwork with a fine-toothed comb enter your mind. It doesn’t have to be that difficult and by just opening a business credit card can make things much easier.
Get A Business Card
With a business credit card your business and personal expenses will be separated making accounting easier. There are also going to be some perks that you wouldn’t have with a personal card to boot.
Deductions, Deductions And More Deductions
So, what fees can be deducted? Annual fees, overdraft fees, processing fees, interest and miscellaneous charges. Combine that with the rewards program that a business card offers and you can potentially save a lot of money. For a business that is starting up that can help keep you in business and for other merchants that probably sounds awfully appealing. Throw on top of that the convenience fees that you pay to file your taxes online are also deductible and you might actually start to look forward to tax time.
Don’t Mess With The IRS
Of course there are also fees that are not tax deductible. Any personal transactions made with the card are not deductible and that is the same for any associated fees. Should you include these as a write-off you will increase your chance of an IRS audit, so make sure that your paperwork is in order.
At this time of year it may be best to work with an accountant to do your taxes, especially if you are just starting out. They will know what to look for and the best way to maximize your deductions. You can make their life easier by separating your personal and business accounts for them. Last, by working with a payment processor like JLE Business Consultants can get a good rate that you can deduct later at tax time. Tax time may become an exciting time for you now.