Online Salespeople! 16 Essential Tax Deductions you can't miss

• Home Office Deduction: Claim expenses for the part of your home used exclusively for business, including a portion of rent, utilities, and insurance.

• Internet and Phone: Deduct the business percentage of your internet and phone bills that you use to run your online store.

• Shipping Supplies: Write off boxes, bubble wrap, tape, labels, and other materials used to ship products to customers.

• Inventory Costs: Deduct the cost of products you purchase to resell, including wholesale items and materials.

• Website and Hosting: Deduct domain registration, hosting fees, and e-commerce platform subscriptions like Shopify or Etsy fees.

• Business Travel: Write off mileage for post office trips, supply runs, and business meetings at the standard mileage rate.

• Office Supplies: Deduct pens, paper, ink, printer, and other supplies used for your business operations.

• Advertising: Claim expenses for online ads, social media promotions, business cards, and other marketing costs.

Every time you make a sale on platforms like eBay, Etsy, or Amazon, they take a cut of your earnings. These fees are fully deductible as business expenses. This includes listing fees, final value fees, and any subscription costs for premium seller accounts. Keep detailed records of all platform charges to maximize this deduction.

Quality product photos are essential for online sales. You can deduct cameras, lighting equipment, backdrops, and photo editing software used to create product listings. If you use your smartphone for product photos, you may be able to deduct a portion of its cost based on business use percentage. Even small items like memory cards and extra batteries qualify.

Software that helps you track inventory levels, manage product listings across multiple platforms, and analyze sales data is fully deductible. This includes specialized inventory apps, barcode scanners, and label printers. These tools not only make your business more efficient but also provide valuable tax savings that many sellers overlook.

Courses, books, and webinars that help you improve your online selling skills are tax deductible. This includes training on photography, marketing, SEO, or platform-specific selling strategies. Even subscriptions to industry publications and membership fees for seller groups or associations qualify as legitimate business expenses that can reduce your taxable income.

If you hire someone to help manage listings, respond to customer inquiries, or handle social media for your online store, these costs are fully deductible. Many online sellers don't realize they can deduct payments to virtual assistants, freelance copywriters, or customer service representatives who help run their business, even if they work remotely or on a contract basis.

Subscriptions to services that help you identify profitable products to sell are tax deductible. This includes market research tools, competitor analysis software, and trend forecasting services. These specialized tools help you make smarter inventory decisions and can be written off completely as necessary business research expenses that directly contribute to your income.

If you upgraded your home internet speed specifically for your online business, you may be able to deduct the additional cost. Fast, reliable internet is essential for uploading product photos, managing listings, and communicating with customers. Keep records showing your previous internet cost versus the upgraded service to support this deduction on your tax return.

Fees paid to bookkeepers, accounting software subscriptions, and receipt management apps are all tax deductible. These services help you track expenses throughout the year and identify additional deductions. Even the cost of tax preparation services and consultations with tax professionals can be written off, making professional financial help more affordable.