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March 21, 2021
Question

If credit card payments aren't tax deductible, are credit card transactions from said credit card deductible?

  • March 21, 2021
  • 1 reply
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1 reply

MJoy_D
March 21, 2021

I can share some insights about credit card payments, @GLEOffice

 

A credit card payment in QuickBooks Self-Employed (QBSE) is considered a transfer. This isn’t deductible, only the Credit Card Interest

 

QBSE doesn't calculate transfers as part of your estimated federal quarterly tax payments. It also doesn't include them as business income or expenses on your financial reports.

 

You'll just have to categorize the principal amount of the payment as Credit Card Payment and the interest as Credit Card Interest.

 

I also suggest consulting an accountant for guidance on the best category to use.

 

To know more about these, check the following articles:

Here's also a guide to help you categorize transactions in QuickBooks Self-Employed

 

Let me know if you still have questions about your credit card payments and or anything else. I'm always here to assist. Have a great rest of the day!