Individuals and corporations are permitted by the Internal Revenue Service (IRS) to deduct specific costs from their taxable income.  

The costs must be reasonable and essential for their trade or company.  

Therefore, annual credit card costs may be deducted from income, but only in certain situations. 

Credit card annual fees are fees that credit card companies charge once a year.  

These fees are typically associated with credit cards that offer higher rewards, travel perks, or elite status.  

Annual fees can vary depending on the card, but they generally range from $50 to several hundred dollars.  

The fee is typically charged automatically to the cardholder’s account on the account anniversary date.

The IRS allows taxpayers to deduct certain expenses from their taxable income.