Claim Square Up fees as a business tax deduction

[FamilyCoach]

From 2017 to present, I never claimed Square Up fees as a business tax deduction. How far back can I amend my returns; how is that done? I'm in MA, USA.

[Candlestore · Accepted solution]

@FamilyCoach ;

This would be something to ask your accountant.  They would be the ones that know how far back you can claim and if you would be eligible for claiming them based on how they reported your income.   I jumped on my accountant for not claiming these expenses my first year.  My accountant pointed out that he used the Net deposit from Square as my Income amount which also matched the 1099 that Square sent me.  Therefore I could not deduct this as a Business expense be cause it was paid before I received income.  

My accounting records show :

1. Sale items , Quantity, Sale Price less and discounts
2. Gross amount due
3. Sales Tax Due
4. Square Fees.
5. Net Deposit

The Net Deposit in my Sales Recipts matches with the amount Square Deposits for my Earnings.  It is not like you receive the actual money as an Income that you can reduce the income by,

Now if Square sent you an invoice at the end of the Month to collect the Transactions fees and you had to Pay this out of your actual Deposit amounts then it would be deductible, as it was explained to me by my accountant.