Self-Employment taxes for PayPal fees

[Grant]

As a self employed worker, I get paid via PayPal. And when I receive payment from someone, PayPal also takes a cut for themselves. It's a small amount, but it does add up. At the end of the year when I do taxes, I usually file for the amount I was paid, which doesn't include the fees. This tax season I am going to add the fees and see if that somehow helps with what I have to pay in this year.

Anyway, should I file for the full amount I was paid and then add the fees as a business expense?

 

[Kane]

Paypal does not work here, therefore, I have never payed taxes. However, when I receive payment through bank transfer, my banks charges 5-8 percent taxes on every transactions, I do not pay yearly taxes on my income.

 

[Grant]

Paypal does not work here, therefore, I have never payed taxes. However, when I receive payment through bank transfer, my banks charges 5-8 percent taxes on every transactions, I do not pay yearly taxes on my income.

I found an answer on it recently and I guess that you can use your PayPal fees towards business expenses when you file your taxes. So I'm going to do that this year to make sure I file correctly.

I think what you're referring to is taxes on your sales. The bank might take a cut too for sending the money over.