How can I control credit card usage

Credit card tax deductible - is it possible?

When preparing their own income tax returns, taxpayers should invest enough time to locate deductible goods. But can you actually deduct the cost of the credit card from tax? This is possible with the advertising costs, here a lump sum of 1000 euros is assumed by the tax office. Anyone who exceeds this amount must provide further information on professional costs in the tax return, which may include the credit card.

Deduct credit card from tax - this is how it works

If a credit card is used for business transactions - for example for a business lunch or a business trip - the costs can be deducted proportionately as business expenses. First of all, the sum of the annual costs for the credit card must be calculated. Then the amount of professional payments must be determined in relation to total sales.

Thereafter, the proportion of professional payments has to be converted to the annual fee for the credit card. If, for example, EUR 500 out of a total turnover of EUR 5,000 resulted from professional payments, a portion of ten percent of the annual fee for the credit card can be deducted from income tax in the area of ‚Äč‚Äčadvertising expenses.

The current account can also be deducted from tax

The same applies to the current account. The account management fee can also be deducted from income-related expenses if professional payments or money are raised on the account. Here, too, the proportion of total sales must be determined and converted to the amount of the annual account management fee so that the correct amount of the deductible sum can be determined.

However, there is a so-called "non-objection limit" of 16 euros - this amount can be automatically deducted from your tax as an account management fee, without the tax office asking for further evidence of the total turnover.

It is not always possible to withdraw the credit card

The withdrawal of the current account and / or credit card in the course of the advertising costs takes place in line 47 of Annex N. Employees incur income-related expenses in the amount of 1000 euros. The tax office automatically takes this amount into account. All costs that arise from work can be deducted from this allowance. If the lump sum of 1000 euros is exceeded, this must be noted in the tax return so that the excess amount can be claimed.

If the advertising expenses have already been exhausted, the credit card cannot always be deducted. Even if a clear separation between private and professional credit card payments is not possible, it cannot be successfully deposited with the tax office. In addition, the tax deduction of the credit card requires a certain amount of effort, since the total turnover with the credit card as well as the proportion of business payments must be determined. So not everyone can deduct their credit card from tax.

Therefore, when choosing a credit card, care should be taken from the start that it offers an attractive tariff with low costs.

Author: editorial staff

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