Submitted By: Raeone
Answered: March 25, 2016 12:08 pm

I paid a convenience fee when I charged my property taxes. Can I deduct this fee?

It is not clear if or how you can deduct the convenience fee. The IRS addressed the question of convenience fees in connection with the payment of federal taxes. While the IRS does not charge a fee for using credit or debit cards to pay federal taxes, the credit card companies do. The IRS said the convenience fees are a miscellaneous itemized deduction. Thus you have to itemize and have miscellaneous itemized deductions in excess of two percent of your adjusted gross income to benefit from any write off. The IRS has not said whether the fee related to the payment of your property taxes should be treated similarly, but logic suggests that it should because it is a cost “in connection with the determination, collection, or refund of any tax.”

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Tax Glossary

Exemption

A fixed deduction allowed to every taxpayer, except those who may be claimed as a dependent by another person. Extra exemption deductions are allowed for a spouse on a joint return and for each qualifying dependent. A deduction of $3,400 is allowed for each exemption claimed on 2007 returns, but the deduction is phased out for certain high income individuals.

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