Vendor category
What tax category is a Stripe charge?
A Stripe charge normally falls under Commissions & fees. This is because a business typically uses Stripe to process payments from customers, and the fees charged are a cost of doing business. If you're using Stripe to make a personal purchase, such as buying a gift, the charge would be a personal expense and not deductible.
STRIPE PROCESSING FEECategory
6010Commissions & fees
Schedule C, line 10
Confidence
95%
- Decided by
- a vendor rule
- Deductible
- Generally deductible
- Why
- matched seed rule 'stripe processing'
When a business uses Stripe to process payments, the fees charged are a cost of doing business and are reported as Commissions & fees on the business tax return. This category includes fees charged by payment processors, such as Stripe, as well as other commissions and fees related to business operations.
On the other hand, if you're using Stripe to make a personal purchase, such as buying a gift, the charge would be a personal expense and not deductible. In this case, the charge would be reported as a draw against equity on the personal tax return.
Personal vs Business
Be sure to distinguish between personal and business use of Stripe.
Fees vs Commissions
Fees charged by Stripe are reported as Commissions & fees, not as a separate expense.
Tax Return Categories
Commissions & fees are reported on Schedule C, line 10, of the business tax return.
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Questions people ask
- What is the difference between a business and personal Stripe charge?
- A business Stripe charge is used to process payments from customers, while a personal Stripe charge is used to make a personal purchase, such as buying a gift.
- Why are Stripe fees reported as Commissions & fees?
- Stripe fees are reported as Commissions & fees because they are a cost of doing business and are related to business operations.
- How do I report a Stripe charge on my tax return?
- A Stripe charge is reported as Commissions & fees on Schedule C, line 10, of the business tax return, or as a draw against equity on the personal tax return.
Related expense categories
More in vendor categories
General information about how bookkeeping and Schedule C categorization work — not tax advice. BookkeeperLens is a demo running on synthetic data.