Business Credit Card Fees
Annual fees and interest charges on business credit cards used for your content business.
Tax Form
Schedule C, Line 27a (fees), Line 16b (interest)
Estimated Savings
$100-1,000/year
How It Works
Annual fees and interest charges on business credit cards are deductible. If you use a credit card exclusively for business, the annual fee is fully deductible. If the card is used for both business and personal, only the business-use percentage of the annual fee is deductible. Credit card interest on business purchases is also deductible.
IRS Rules & Requirements
- Business credit card annual fees are fully deductible if 100% business use
- Mixed-use cards: Only deduct business-use percentage of annual fee
- Credit card interest on business purchases is deductible (Schedule C, Line 16b)
- Foreign transaction fees on business purchases are deductible
- Late payment fees are NOT deductible (penalties)
Real Examples
Business credit card annual fee of $95 (100% business use) = fully deductible
Chase Ink card $95 annual fee at 80% business use = $76 deduction
Interest on business purchases totaling $500 = fully deductible
Common Mistakes to Avoid
- Deducting full annual fee on a mixed-use card
- Forgetting that business credit card interest is deductible
- Trying to deduct late payment fees (not allowed)
- Not tracking business vs personal use percentage
Pro Tip
Use a dedicated business credit card for all business purchases. This makes the annual fee 100% deductible and simplifies expense tracking at tax time.
Related Deductions
Business Bank Account Fees
Monthly fees, wire transfer charges, and other banking costs for your business accounts.
Payment Processing Fees
PayPal, Stripe, and other payment processor fees on business income.
Accountant & CPA Fees
Tax preparation, bookkeeping, and accounting services for your business.
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