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| It's Tax Time...AGAIN! |
Merchant Paid Processing Fees:
- Merchant processing fees are tax-deductible. They are part of running your business.
- Your processor is required to provide a 1099-K no later than January 31st.
- This deduction doesn’t affect your company’s total tax liability; the tax deduction is subtracted from your gross earnings which will lower the total taxable income amount.
- Only Businesses are eligible to deduct credit or debit card processing fees associated with paying taxes, not individuals.
- Remember this year Cash App/Venmo/Zelle will also send 1099-K forms!
Customer Paid Processing Fees:
- Customer Surcharging and Cash Discount is allowed in the state of Florida.
- Instead of the merchant paying the processing fees from their sale, the merchant account "legally" adds the up to 3% surcharge or the up to 4% Cash Discount fees. No need for guessing.
- Documentation must be present within the environment indicating that these fees would be paid by the customer.
- The merchant keeps the full cost of the purchase and the customer paid fees cover MOST of the credit card acceptance fees!
Merchant Processing Solutions wants to know...which are you interested in knowing about?
- Do you want to wait until next year to deduct the fees charged for credit card processing?
- Do you want to keep your sales revenue on products and servics by letting the customer pay for priviledge of using their credit card?
Start this new 2024 with keeping more money in your pocket for the growth of your business! Call us to learn more!
