The good news is that some credit card fees are tax-deductible for self-employed individuals.
These fees include those associated with the business use of the credit card, such as annual fees, interest charges, and other finance charges.
For example, if you use your credit card to purchase equipment for your business, the interest charges associated with that purchase are tax-deductible.
Similarly, if you pay an annual fee for a credit card that you use exclusively for business purposes, that fee is also tax-deductible.
It’s important to note that only the portion of the credit card fees that are related to business use are tax-deductible.
If you use your credit card for both business and personal expenses, you’ll need to determine what portion of the fees is related to business use.
To calculate the portion of credit card fees that are tax-deductible, you’ll need to keep accurate records of your credit card expenses.
This can be done by saving receipts and keeping a log of the expenses.