Skip to main content
L
laura-lauraelylc
March 10, 2021
Question

With Self Employed, how do I account for card processing fees? For $100 from a card, I get say $99 deposited to bank account. How to track the $1 fee for tax deduction?

  • March 10, 2021
  • 1 reply
  • 0 views
Original commenter did not share additional details

1 reply

KlentB
KlentB
March 10, 2021

I'll be glad to guide you in tracking it, laura-lauraelylc.

 

You can manually record the card processing fee in QuickBooks Self-Employed. To ensure that this transaction will show on the correct line of your Schedule C, you'll have to categorize it under Transaction/processing fees. Here's how:

 

  1. Select Transaction from the sidebar menu.

  2. Click Add Transaction.
  3. Enter the description and amount ($1.00) of the fee.
  4. For the category, choose Transaction/processing fees.
  5. When you’re done, select Save.

In addition, here are some articles that you can read to help manage your business transactions in the program:
 

Do let me know if you need more help in completing your other tasks. Simply add the details in the comment section and I'll get back to you as soon as I can.

KlentB
KlentB
March 11, 2021

Hi aura-lauraelylc,

 

Hope you’re doing great. I wanted to see how everything is going about your issue in recording the processing fee yesterday. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

D
donmccurdy
November 27, 2021

 

Unfortunately these steps don't work if you're importing transactions from a bank account. The bank transaction will show $99 income, and adding a $1 fee means net income tracked is $98. Instead, I think that you'd need to:

 

1. Mark the original $99 transaction as "Excluded".

2. Create a manual $100 transaction as income.

3. Create a manual –$1 transaction as "Transaction/processing fees".

 

So for every income transaction, you'll need to exclude the original and create two manual transactions.

    Terms & ConditionsAccessibility statement