Let’s be real: taxes aren’t the fun part of running an eCommerce business. You’d rather focus on scaling your Shopify store, launching new products, or running killer ad campaigns. But here’s the thing: if you’re not taking advantage of every tax deduction available, you’re basically handing free money to the IRS.
And we definitely don’t want that.
As a trusted Austin, Texas CPA, I see online sellers miss out on big tax savings every year just because they don’t know what they can write off. But not you! Because today, we’re breaking down five tax deductions you should absolutely be claiming.
1. Home Office Deduction: Your Work-From-Home Setup Counts
Selling from your laptop? Packing orders in your garage? Guess what: you might qualify for the home office deduction.
What you can deduct:
- A percentage of your rent or mortgage (based on the square footage of your workspace).
- Business-related utilities, internet, and phone bills.
- Office furniture, supplies, and that fancy ergonomic chair you bought.
IRS Alert: Your home office must be used exclusively for business—your kitchen table doesn’t count.
Not sure if you qualify? Insogna CPA, an experienced Austin tax accountant, can make sure you claim this deduction properly without IRS red flags.
2. Internet & Software Costs: Your Business Runs on Tech, Simply Write It Off
You’re running a digital business, so chances are, you’re paying for a lot of online tools and services. The good news? They’re all tax-deductible.
What you can deduct:
- Shopify, Amazon, and Etsy seller fees.
- QuickBooks, Avalara, TaxJar, and inventory management software.
- Email marketing tools (Klaviyo, Mailchimp).
- Website hosting, domain fees, and cybersecurity software.
Pro Tip: If you prepaid for annual subscriptions, make sure they’re categorized correctly. At Insogna CPA, a top CPA in Austin, Texas, we help eCommerce sellers track every deductible expense.
3. Business Mileage: Yes, Your Car Could Be a Write-Off
If you ever drive to:
✔ Meet with suppliers
✔ Ship products at the post office
✔ Attend a trade show or networking event
Congrats! You might be missing out on a tax deduction.
For 2024, the IRS standard mileage deduction is 67 cents per mile—which adds up fast.
Pro Tip: Use a mileage tracking app like MileIQ or QuickBooks Self-Employed to automatically track your business mileage. As an Austin small business accountant, we make sure you don’t miss these easy tax savings.
4. Training & Education Expenses: Leveling Up = Tax Write-Offs
Investing in yourself is investing in your business and guess what? It’s tax-deductible.
What you can write off:
- Online courses & certifications (SEO, Facebook Ads, Shopify growth strategies).
- Business books & industry subscriptions.
- Masterminds, coaching, and paid networking groups.
- Conference tickets & trade shows.
Pro Tip: If the training helps you make more money in your business, it’s likely deductible! Need help sorting personal vs. business education expenses? Insogna CPA, a leading tax advisor in Austin, has you covered.
5. Retirement Contributions: Save for the Future & Slash Your Taxes
Want to reduce your taxable income and keep more money in your pocket? Start investing in your future.
Best retirement plans for eCommerce sellers:
- SEP IRA – Contribute up to 25% of your income (or $66,000 per year).
- Solo 401(k) – Great for solo business owners; allows for higher contributions.
Why this matters: Instead of handing more money to the IRS, you’re growing your wealth—tax-free.
Not sure which plan is right for you? Insogna CPA, a trusted CPA in Austin, Texas, helps eCommerce sellers set up tax-saving retirement accounts.
Ready to Keep More of Your Profits? Let’s Make It Happen.
Most eCommerce sellers overpay on taxes simply because they don’t know what they can deduct. Let’s change that.
At Insogna CPA, we help Shopify and Amazon sellers:
✔ Track every eligible deduction so they keep more of their profits.
✔ Ensure IRS compliance (because nobody wants a tax audit).
✔ Create a tax strategy that actually works for their business.
Let’s maximize your deductions. Schedule a tax review with Insogna CPA today!
Whether you need a small business CPA in Austin, an Austin, TX accountant, or expert guidance from one of the best Austin accounting firms, we’ve got your back. Let’s do this!