If you have paid or plan on paying your personal income taxes by credit or debit card and you itemize your deductions, you may now be able to deduct convenience fees charged by your card processor for the use of the credit or debit card. This applies to both your balance due and estimated tax payments. In a reversal of its prior position, the IRS now says it will allow taxpayers to deduct the fees associated with using a credit or debit card for paying federal individual income taxes electronically. The fees associated with credit or debit card transactions, called. Read More.