Pay Pal and fees

[Michael Carson]

I recently started using Pay Pal and the fees are 3.20 every 100.00. I send an invoice to the client they click on link, pay the bill, Pay Pal takes out the fees and the rest is mine. So, the question is can we claim the Pay Pal fees on my taxes as an expense or how do folks who use Pay Pal claim the fees? How do you put those fees in your quickbooks so that it makes sense.

Thanks.

[Jerry Simon]

I recently started using Pay Pal and the fees are 3.20 every 100.00. I send an invoice to the client they click on link, pay the bill, Pay Pal takes out the fees and the rest is mine. So, the question is can we claim the Pay Pal fees on my taxes as an expense or how do folks who use Pay Pal claim the fees? How do you put those fees in your quickbooks so that it makes sense.

Thanks.

Hi Michael,

I use Paypal, too, but very few times a year; only when asked if I take credit cards.

I simply record the lesser deposit amount, say, instead of a $400 fee, I record a deposit of $387.20, or whatever it might come to. Less taxable income makes it mostly a wash, no?

[Brad Manor]

I would assume it is the same as writing off service fees from the bank on your business account.

-Brad

[Jim Katen]

I recently started using Pay Pal and the fees are 3.20 every 100.00. I send an invoice to the client they click on link, pay the bill, Pay Pal takes out the fees and the rest is mine. So, the question is can we claim the Pay Pal fees on my taxes as an expense or how do folks who use Pay Pal claim the fees? How do you put those fees in your quickbooks so that it makes sense.

Thanks.

After many years using Paypal, I began, this year, to charge the customer an extra fee to cover the service. I had one customer complain about it and I waived it for her. Otherwise, everyone just pays it.

I only claim the money that I receive as income. The paypal fees are just like any other banking fee.