NAICS code: 454110
Online selling isn’t as hassle-free and easy as it looks. However, it will be a great advantage for you if you learn how to save money on your taxes by claiming tax write-offs. Online sellers, take notes so you don’t have to overspend on taxes.
We have put together a list of the most common write-offs for online sellers that you can use to deduct your expenses.
📣 Online advertising
Write it off using: Schedule C, Box 8
The money you spend on Google AdWords, Facebook Ads, and other sites to advertise your massage studio is tax-deductible.
📦 Shipping & packaging
Write it off using: Schedule C, Box 27a
You need boxes, tapes, bubble wraps, and postage fees to ship a product successfully. All these are tax-deductible.
🧮 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.
💳Card processing fees
Write it off using: Schedule C, Box 10
You need to pay your payment processor’s fee which adds up to 2.75% of your expenses. It’s tax-deductible.
👤Industry education
Write it off using: Schedule C, Box 8
Getting professional headshots done to book acting and model gigs can be written off.
🔎Platform search placements
Write it off using: Schedule C, Box 8
Online selling platforms take commissions from you. These can be very expensive and you can deduct those costs.
🤑Ecommerce platforms
Write it off using: Schedule C, Box 18
Deduct what you pay for e-commerce programs like Shopify and WooCommerce.
🧱Supplier costs
Write it off using: Schedule C, Box 10
Fees you pay your vendor or supplier can be written off.
📧 Email marketing software
Write it off using: Schedule C, Box 18
If you use any email marketing software like Mailchimp or ActiveCampaign, write it off.
📱Phone, laptop, accessories
Write it off using: Schedule C, Box 27a
If buy a phone or laptop and use it for work, it’s partially deductible.
🎥Camera equipment
Write it off using: Schedule C, Box 22
Any equipment you use to shoot promotional tapes and portraits can be written off.
📝 Office supplies
Write it off using: Schedule C, Box 18
Deduct anything you buy for your office, like pens, binders, folders, printer ink, or a whiteboard.
🧵Materials & equipment
Write it off using: Schedule C, Box 38 (COGS)
If you make and sell your own products like hand-embroidered clothes, write off the fabric and floss.
👚Personalized merch
Write it off using: Schedule C, Box 8
You can deduct anything you order to show off your personal brand, including T-shirts, stickers and mugs.
📱 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.
Parking
Tolls
Car purchase & depreciation
Vehicle tool kit
Car insurance & registration
Car maintenance
Transportation
Travel lodging
Meals while traveling
Home office furniture
Property repairs
Power bill
Property insurance
Water bill
Wi-Fi bill
