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How Does LendingTree Get Paid?
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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

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LendingTree is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products. We are compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order).

Are credit card fees tax deductible?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

While credit card fees on a card used for personal expenses aren’t tax deductible, fees on a card used for business expenses may be. Read on and we’ll break down what the IRS has to say on the matter.

Are credit card annual fees tax deductible?

Here’s the good news — annual fees and some other credit card fees, on business credit cards are tax deductible, according to guidelines from IRS Publication 535. In order for an expense to be deductible, it must be “both ordinary and necessary,” the IRS specifies. Here’s how the agency defines such expenses:

  • Ordinary expenses are “common and accepted in your industry.”
  • Necessary expenses are “helpful and appropriate for your trade or business.”

Business credit card annual fees fall into these requirements since many of the daily business transactions you make will be paid for with a credit card, and the annual fee helps provide a payment method.

Are other credit card fees tax deductible?

As long as the fees meet the criteria above, they should be tax deductible. That can help, for example, if business requires travel abroad and you incur foreign transaction fees for purchases made while traveling.

If you incur interest charges on business expenses charged to your card, those should be tax deductible too.

Do you have to have a business credit card?

It’s crucial to keep business and personal expenses separate — so whether you’re using a small business credit card or a consumer credit card, make sure to have a dedicated card for your business spending. If you mingle the two, that may disqualify you from deducting fees and interest when filing taxes.

Plus, keeping business and personal expenses on separate cards enables better recordkeeping, which will be important if you ever face an audit. And many business cards offer tools to help with recordkeeping, like downloadable purchase records and the ability to connect your card with popular bookkeeping software.

It’s important to note that you shouldn’t necessarily open a business credit card with a high annual fee just because it might be tax deductible. You should still conduct a careful analysis to determine whether the rewards and benefits make the card worthwhile depending on what your business needs.

That said, it can make sense to pay an annual fee for a business card if you need certain premium benefits, such as the airport lounge access offered by the Business Platinum Card® from American Express. We’ll go over some options for business credit cards and help you pick the one that’s best for your situation.

The Business Platinum Card® from American Express

Best for: luxury travel benefits

| Disclosures
The Business Platinum Card® from American Express
The Business Platinum Card® from American Express
on American Express's secure site
Terms Apply
N/A
17.99% - 25.99% Variable
$695
5X Membership Rewards® points on flights and prepaid hotels on amextravel.com. Get
  • Welcome Offer: Earn 120,000 Membership Rewards® points after you spend $15,000 on eligible purchases with your Card within the first 3 months of Card Membership.
  • Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com, and 1X points for each dollar you spend on eligible purchases.
  • Earn 1.5X points (that’s an extra half point per dollar) on eligible purchases at US construction material & hardware suppliers, electronic goods retailers and software & cloud system providers, and shipping providers, as well as on purchases of $5,000 or more everywhere else, on up to $2 million of these purchases per calendar year.
  • Unlock over $1,000 in annual statement credits on a curation of business purchases, including select purchases made with Dell Technologies, Indeed, Adobe, and U.S. wireless service providers.
  • $200 Airline Fee Credit: Get up to $200 in statement credits per calendar year for checked baggage fees, lounge day passes, and more at one selected airline.
  • $189 CLEAR® Credit: Use your Card and get up to $189 back per year on your CLEAR® membership. CLEAR® is available at more than 50 U.S. airports and stadiums.
  • The American Express Global Lounge Collection® can provide an escape at the airport. With more than 1,400 airport lounges across 140 countries and counting, you have more lounge location options than any other credit card on the market as of 9/2021.
  • $695 Annual Fee.
  • Terms Apply.
680 850

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

The Business Platinum Card® from American Express has a $695 annual fee.

However, the card also comes with access to the American Express Global Lounge Collection®, which includes more than 1,400 airport lounges across 140 countries.

Plus, the card offers numerous credits, including:

  • Up to $200 per year for baggage fees and more when you select one qualifying airline
  • Up to $189 per year to go toward a CLEAR® membership (enrollment required)
  • Up to $400 back per year on U.S. purchases with Dell Technologies (enrollment required)
  • Up to $360 back per year for purchases with Indeed (enrollment required)
  • Up to $150 back per year for select subscriptions with Adobe Creative Solutions (enrollment required)
  • Up to $120 back per year for wireless telephone service purchases (enrollment required)

You can also earn a generous welcome offer: Earn 120,000 Membership Rewards® points after you spend $15,000 on eligible purchases with your Card within the first 3 months of Card Membership.

And there are valuable ongoing rewards: 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com. Get 50% more Membership Rewards® points. That's an extra half point per dollar, on each eligible purchase of $5,000 or more.

To see rates & fees for The Business Platinum Card® from American Express please click here.

The Capital One Spark Cash Plus

Best for: no preset spending limit

| Disclosures
Capital One Spark Cash Plus
Capital One Spark Cash Plus
on Capital One's secure site
N/A
N/A
$150
2% Cash Back on every purchase; 5% Cash Back on hotels and
  • Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening
  • Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions
  • Comes with no preset spending limit, so it can adapt to your needs based on your spending behavior, payment history and credit profile
  • Earn an annual $200 cash bonus every year you spend $200,000 or more—that's enough to cover your annual fee and then some
  • Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
  • Add employee cards for free, and earn unlimited 2% cash back from their purchases
  • $150 annual fee
  • Spark Cash Plus has no APR because your balance is due in full every month
680 850

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

The Capital One Spark Cash Plus has a $150 annual fee.

Where this card stands out is there’s no preset spending limit. Rather, how much you can charge to the card will adapt based on factors such as your purchase and payment history. This can be useful if you often find that you need flexibility to make large purchases.

But note that you can’t carry a balance on the Capital One Spark Cash Plus. You must pay your balance off in full every month, otherwise you’ll be charged a 2.99% monthly late fee.

There’s a two-tiered sign-up bonus: Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening.

And you earn flat-rate rewards at the rate of 2% cash back on every purchase; 5% cash back on hotels and rental cars booked through capital one travel.

The Ink Business Preferred® Credit Card

Best for: flexible rewards

| Disclosures
Ink Business Preferred® Credit Card
Ink Business Preferred® Credit Card
on Chase's secure site
N/A
18.99% - 23.99% Variable
$95
Earn 3 points per $1 on the first $150,000 spent in combined
  • Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®
  • Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
  • With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
  • With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information
  • Redeem points for cash back, gift cards, travel and more - your points don't expire as long as your account is open
  • Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards®
  • Purchase Protection covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account
750 850

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

The Ink Business Preferred® Credit Card, issued by Chase, has a $95 annual fee.

One of the main draws with this card is that it earns valuable Chase Ultimate Rewards® points. You’ll get 25% more value when redeeming your points for travel through the Chase Ultimate Rewards® portal, or you can transfer them at a 1:1 rate to the following airline and hotel partners:

  • Aer Lingus AerClub
  • Air Canada Aeroplan
  • British Airways Executive Club
  • Emirates Skywards
  • Flying Blue Air France KLM
  • Iberia Plus
  • JetBlue TrueBlue
  • Singapore Airlines KrisFlyer
  • Southwest Airlines Rapid Rewards
  • United MileagePlus
  • Virgin Atlantic Flying Club
  • IHG Rewards Club
  • Marriott Bonvoy
  • World of Hyatt

The Ink Business Preferred® Credit Card comes with a generous sign-up bonus: Earn 100,000 bonus points after you spend $15,000 on purchases in the first 3 months from account opening.

It also rewards spending in common business categories: Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn.

To see rates & fees for The Business Platinum Card® from American Express please click here.

 

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