Tax Deductions. Bank and Merchant Fees

Fees paid to banks for business account maintenance, wire transfers and other services are tax deductible. Fees that were refunded cannot be deducted. If a fee was refunded in a different tax year than it was incurred, the refund should be recognized as an income for the year it happened. Merchant services providers such as square or stripe charge commissions and flat fees for their services. All of them are tax deductible. Do not deduct interest charged on bank loans as bank fees. Instead deduct them as interest expense.