1099-K Convenience Fee Write-Off

1099K fees, filter out convenience fees for 1099-K

Crystal Abing avatar
Written by Crystal Abing
Updated over a week ago

The total amount that you will see on the 1099-K is the gross amounts of payments processed by Propay.

This will include the actual rent payment, convenience fees, and also deposits.

This amount includes the convenience fees which you do not claim as income.

It is required by law from Propay to report the total gross amount of payments processed. You are able to deduct the full cost of merchant fees.

Your business can deduct the full cost of merchant fees on a Schedule C. These tax deductions do not directly affect your company’s total tax bill. Instead, this tax deduction is subtracted from your gross earnings, which allows you to pay taxes on less of your business’s income.

Did this answer your question?