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Business OperationsFull Deduction

Business Bank Account Fees

Monthly fees, wire transfer charges, and other banking costs for your business accounts.

Tax Form

Schedule C, Line 27a

Estimated Savings

$50-300/year

How It Works

Fees charged by your bank for business account services are deductible expenses. This includes monthly maintenance fees, wire transfer fees, check printing costs, and overdraft fees on business accounts. Note that late payment fees are classified as penalties and typically are NOT deductible. Having a separate business bank account also makes tax time much easier.

IRS Rules & Requirements

  • Only business bank account fees are deductible (not personal accounts)
  • Deductible fees: Monthly maintenance, wire transfers, check printing, ACH fees
  • Late payment fees are NOT deductible (classified as penalties)
  • If using a mixed-use account, only deduct business portion
  • Keep bank statements showing fees charged

Real Examples

Business checking account at $15/month = $180/year deduction

Wire transfer fees totaling $100/year = fully deductible

Check printing at $50 = fully deductible

Common Mistakes to Avoid

  • Deducting fees from personal bank accounts
  • Trying to deduct late payment penalties
  • Not keeping bank statements as documentation
  • Missing deduction for small transaction fees

Pro Tip

Open a dedicated business bank account - it makes tracking deductible fees easy and separates business from personal finances, which the IRS prefers to see.

Related Deductions

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