Originally Posted by
abc5
This is great info thank you. Would the payment fees we paid for using these payment providers be added to deductible tax preparation fees line item in our taxes? I presume the 1099 I will get will have these fees listed.
But the issue I see for me is, these fees I paid about two months ago in present year 2023 were incurred in 2023 1 day before I filed my 2023 return to overpay my 2023 tax return (for 2022) .
Would i be in need of filing a amended 2023 return to itemize these fee expenses (not really worth my time)
or since my fees were incurred in 2023 is what matters, and thus i can itemize them in my upcoming 2024 return (for tax year 2023).
1. To repeat from my previous post, form 1099 is for other entities to report amounts that they PAID TO YOU. You will NOT receive a 1099 for payments that you make.
2. My non-professional layperson's research suggests that credit card convenience fees are not deductible on personal returns. They may be deductible for a business.
3. Deductions are taken for the tax year in which the expense occurred, even if the expense was related to something for a prior tax year -- by way of analogy, if you receive a taxable refund in 2023 it counts as income for the year 2023 even though it may have been a refund for your 2022 state tax return
4. Tax returns are generally referred to by the tax year they are associated with, not when you file them. You have not filed your 2023 return yet, you are talking about your 2022 return.
We are kinda wandering away from the thread topic, so I would suggest that if you want to drill down further on these topics, you should be talking with a qualified tax professional and not some random jerk like me on the Internet, especially on a site that is not specifically about financial issues.