Are Business Credit Card Fees Tax-Deductible?
Business card costs are deductible
When a credit card is used for business, its annual fee, interest, late fees, and other finance charges are generally deductible as ordinary and necessary business expenses. This is one practical reason to keep a separate business card: it cleanly documents which costs belong to the business. Personal-card fees and interest are not deductible.
How rewards affect deductions
Card rewards are generally treated by the IRS as a rebate on your spending, not as income, so you do not pay tax on them. The flip side is that a reward effectively reduces the cost of the purchase, so if you deduct a business expense, you deduct the net amount after any reward earned on it. See are rewards taxable.
Keep clean records
Use one card for business and keep statements, since clean separation makes deductions defensible if you are ever audited. Mixed personal and business use on one card complicates everything. This is general information, not tax advice; confirm specifics with a tax professional. See cards for business expenses and personal vs business cards.
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