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Tammy F.
Tammy F., Not an active Expert
Category: Tax
Satisfied Customers: 9168
Experience:  Not an active Expert
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Are NSF fees paid to a bank tax deductible

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Submitted: 10 years ago.
Category: Tax
Expert:  Tammy F. replied 10 years ago.

If it's on a personal bank account, no.

If it's for your business account, they would be a business expense.

But, for personal accounts, it's not a deduction.


Let me know if you need more help.

Customer: replied 10 years ago.
I cant understand how this can be a business loss and not a personal loss.
Expert:  Tammy F. replied 10 years ago.

If it's a business expense, it's part of doing business and can be deducted as such.


It's a mistake that you made and it's not deductible. It might help you to think of it as a penalty as opposed to a fee.

Customer: replied 10 years ago.
But to me an NSF fee would be a mistake on the part of the person conducting the business the same as a mistake on my part.
Expert:  Tammy F. replied 10 years ago.

But as a business, it's an expense of doing business. As an individual, it's a fee that you pay for bad accounting or mistakes.

I can tell that it's not what you want to hear but it's not deductible as an individual.