There are at least 101 tax deductions for Etsy sellers! Don’t miss out on a single tax deduction for your Etsy shop business. Whether you sell handmade products, craft supplies, or vintage lovelies, we have got you covered! Here are 101 tax deductions to get you started!
This post contains affiliate links, see my disclosure here.
This post is meant for general informational purposes only, and should not be taken as legal, tax, or accounting advice.
101 Tax Deductions for Etsy Sellers!
1. Facebook advertising
2. Email service provider subscription fee (ex. Convertkit)
3. Stock photography purchases (ex. Creative Market)
4. Hosting provider monthly fee (ex. BlueHost)
5. Adobe creative cloud for tools such as Photoshop
6. Pinterest scheduling tool (ex. Tailwind)
7. Virtual assistant for general help (my VA is great!)
8. Graphic designer
9. Printer paper and ink (use Quill for good prices and coupons!)
10. Online courses to help you grow your business
11. Books to help you grow your business
12. Coaching fees to help you grow your business
13. Travel costs to a conference or craft show
14. Ticket to business-related conference
15. Hotel at a conference
16. 50% of the cost of meals at a conference
17. The portion of cell phone expense related to your business
18. The portion of internet expense related to your business
19. The portion of computer purchase expense related to your business
20. The portion of camera purchase related to your business (good product photographs are so important!)
21. Online accounting program monthly fee (my recommendation- QuickBooks)
22. Course to teach you how to do your own Etsy shop bookkeeping
23. Cost of hiring a bookkeeper
24. Cost of hiring a tax professional
25. Online program for filing your taxes at year-end
26. Cost of your course hosting site (ex. Thinkific)
27. The yearly cost of domain name purchase and registration (ex. NameCheap)
28. Raw materials for your handmade items
29. Price paid for vintage items at garage and estate sales (keep a log!)
30. Cost of wholesale supplies purchased in bulk for resale
31. Picmonkey to design your own pins and printables
32. Purchase of a custom font (ex. Creative Market)
33. Etsy shop logo design and branding
34. Shipping supplies & materials
35. Postal scale to weigh your packages prior to shipment
36. SEO consultant for Etsy keywords
37. Pinterest advertising
38. Video conferencing monthly fee (ex. Zoom or Appear.in)
39. Book to help you understand how to file your Etsy business taxes
40. Blank note cards to include a handwritten thank you note in each package
41. File storage and sharing tool (ex. Dropbox)
42. Password management tool (ex. LastPass)
43. Ideas saving tool (ex. Evernote)
44. Half sticker sheets for printing postage labels
45. Google apps subscription to get a custom email
46. Etsy fees (ex. transaction, listing, etc.)
47. Giveaway aid product (ex. King Sumo)
48. Payment processing fees
49. Appointment and client meetings scheduling tool (ex. YouCanBook.me)
50. Ingredients for food for a specialty food Esty shop
51. Materials for new product experimentation
52. Online conference fee
53. Photo editing software for Etsy images
54. Monthly fee to have your own online shop (ex. Shopify)
55. Business planner
56. Booth or table fee at a craft show
57. Home office tax deduction (where you make your products or store your inventory)
58. Banking fees
59. Miles, you drove in your personal car that was for a business purpose
60. Donations to charity (deducted on your personal taxes, but money can come from business accounts)
61. Ticket to tradeshow
62. Educational expenses
63. Business insurance premiums
64. Fee for filing a patent
65. Interest on a business credit card or business loan
66. Office supplies
67. Bad debts
68. Business Association membership dues
69. Business-related membership site dues
70. Microphone for business projects (this is the one I use, good but cheap)
71. Video camera for business projects (ex. courses, YouTube, email video series)
72. Credit card convenience fees
73. Education or training for virtual assistants
74. Postage or shipping
75. Cost of giveaway items
76. Parking and tolls for business travel
77. Post office box
78. Website design services
79. Ink for printing postage labels
80. Team management program (ex. Asana or Trello)
81. Social Media manager virtual assistant
82. Twitter scheduling tool (ex. Edgar)
83. A portion of FICA tax paid
84. Payments made to drop shipper
85. Home office supplies
86. Rent on a business facility
87. Shared workspace monthly fee
88. Sales tax filing help (ex. TaxJar) extremely helpful with all the sales tax changes
89. Business gifts under $25
90. Equipment rental
91. Cricut for making items to sell
92. Business registration or permit fees
93. Payroll processing if you are an S Corp.
94. The monthly fee for Etsy Plus or Etsy Premium
95. Start-up expenses
96. Google advertising
97. Payments to affiliates of your products
98. Fees and expenses to register your trademark
99. Heavy duty tape and dispenser for packaging boxes
100. Shipstation
101. Business cards or mailers
Whew! What a list! Hopefully, you have a better idea of what tax deductions you can take as an Etsy seller! The IRS says you can take a tax deduction for expenses that are reasonable and necessary. Good luck with your shop!
