30 Tax Write-Offs for Online Sellers

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Whoever would have imagined just a few decades ago that people could run their own store from the comfort of home? Yup, it sure is a wonderful world of e-commerce out there — so why are so many online sellers overpaying on their taxes? Luckily you can avoid this trap, simply by claiming all the everyday sort of business purchases you make all the time.

It doesn't matter if you're selling on eBay, Etsy, Depop, or your own Shopify setup, and these tax write-offs apply to you whether you're selling your own, handmade goods or sourcing the best items from your local thrift stores.

From merchandise to shipping supplies, any ordinary expense your store runs you can also save you money in the long run! And we’ve made it even easier, by compiling a list of the best write-offs for online sellers in one place. It’s like applying an automatic coupon at checkout!

🤑
Ecommerce platforms
Write it off using:

Schedule C, Box 18

Deduct what you pay for ecommerce programs like Shopify and WooCommerce.

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Packaging & shipping
Write it off using:

Schedule C, Box 27a

Bubble mailers, boxes, tissue paper and more: anything you buy to ship customer orders is a write-off.

🧱
Supplier costs
Write it off using:

Schedule C, Box 10

Fees you pay your vendor or supplier can be written off.

📣
Online advertising
Write it off using:

Schedule C, Box 8

Ad campaigns on Google, Meta, TikTok, and more are all deductible on your taxes.

🧮
Inventory storage
Write it off using:

Schedule C, Box 20b

If you keep your inventory in a warehouse, you can write off your rent on it.

📧
Email marketing software
Write it off using:

Schedule C, Box 18

Write off any email marketing software like Mailchimp or ActiveCampaign.

🎥
Camera equipment
Write it off using:

Schedule C, Box 22

Any equipment you use to shoot promotional tapes, portraits, and more can be written off.

💳
Card processing fees
Write it off using:

Schedule C, Box 10

The 2.75% fee (give or take) that you pay your payment processors adds up. It's deductible!

💰
Platform commissions
Write it off using:

Online seller platforms take some of your money on every sale. You can deduct those costs!

🔎
Platform search placements
Write it off using:

Schedule C, Box 8

Sponsored search placements on Amazon, Etsy, and more are deductible advertising expenses.

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Materials & equipment
Write it off using:

Schedule C, Box 38 (COGS)

Make your own products? If you sell, say, hand-embroidered clothes, write off the fabric, floss, and your Singer.

👚
Personalized merch
Write it off using:

Schedule C, Box 8

Deduct anything you order to show off your personal brand: T-shirts, stickers, mugs, and more.

🎨
Creative assistance
Write it off using:

Schedule C, Box 11

If you need to hire an editor, designer, photographer, or other creative pro, write off what you pay them.

📱
Social media tools
Write it off using:

Schedule C, Box 18

Write off the tools you use to create assets, schedule posts, or pull analytics.

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If you drive for work ...

While commuting expenses aren't deductible, errands like picking up inventory, dropping off a package, or meeting with a vendor or supplier are considered work-related. So if you're an online seller who does any of the above, you can write off car expenses!

🅿️
Parking
Write it off using:

Schedule C, Box 27a

Parking for a meeting downtown, or any other work trip, is tax-deductible!

🛣️
Tolls
Write it off using:

Schedule C, Box 27a

A toll while driving to or from a work destination is tax-deductible!

🚘
Car purchase & depreciation
Write it off using:

Schedule C, Box 13

If you buy a new car, you can write off part of the cost every year for five years.

🧰
Vehicle tool kit
Write it off using:

Schedule C, Box 22

Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.

☂️
Car insurance & registration
Write it off using:

Schedule C, Box 15

Car insurance monthly fees, registration, even roadside assistance are partially deductible.

🔧
Car maintenance
Write it off using:

Schedule C, Box 9

Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.

If you discuss work at a restaurant ...

Stocking your fridge with healthy snacks to keep you going through the workday might not count as a business meal. But going for dinner or coffee to talk about your work with fellow online sellers, vendors, accountants, or lawyers does count. So go ahead and write off the cost!

🍔
Business meals
Write it off using:

Schedule C, Box 24b

If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!

If you leave town for work ...

There are lots of annual ecommerce seminars, workshops, and conferences around the country each year. If you end up going to any of them to learn and network, you can write the travel costs off as business expenses. This also counts for other work-related trips, like visiting an out-of-town supplier!

🛫
Transportation
Write it off using:

Schedule C, Box 24a

Planes, trains, and car rentals are all work-related travel costs that can be written off.

🏨
Travel lodging
Write it off using:

Schedule C, Box 24a

When you travel for work, lodging expenses such as hotel rooms or Airbnb are write offs.

🥡
Meals while traveling
Write it off using:

Schedule C, Box 24a

When you're traveling for work, all meals are tax-deductible. Even takeout!

If you work from home ...

Online sellers often have areas of their homes dedicated to photographing products or packaging orders. You might also have a desk where you work on marketing and industry research. Both of these scenarios make you eligible to claim home office deductions!

🛋️
Home office furniture
Write it off using:

Schedule C, Box 18

A desk, chairs, lamps, and other home office necessities are all tax write-offs.

🛠️
Property repairs
Write it off using:

Schedule C, Box 21

You can write off up to $2,500 for individual repairs to your property.

🔌
Power bill
Write it off using:

Form 8829

Gotta keep the lights on in your home office! A portion of your electricity bill counts.

🌪️
Property insurance
Write it off using:

Form 8829

Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.

🚰
Water bill
Write it off using:

Form 8829

It'd be hard to work in an office without running water, huh? You water bill counts.

🌐
Wi-Fi bill
Write it off using:

Schedule C, Box 25

Your Comcast bill is a tax write-off. You need internet to do your job!