Running an eCommerce business is all about growth, strategy, and sales—but what about tax savings? If you’re not maximizing deductions, you’re leaving money on the table (and trust me, the IRS isn’t going to remind you).
So, let’s fix that. As a trusted Austin, Texas CPA, we help Shopify, Amazon, and online business owners track expenses, lower their tax bill, and keep more of their profits.
Here are 7 tax deductions you might be missing and how to start claiming them today.
1. Inventory Write-Offs: Stop Paying Taxes on Unsellable Stock
Inventory isn’t always cash in the bank. Sometimes, products get damaged, expire, or just… don’t sell (RIP to that trend that died too fast). The good news? You can write it off!
What qualifies?
- Expired food, beauty products, or supplements.
- Defective or unsellable returns.
- Old stock that’s just taking up space.
Pro Tip: Keeping detailed inventory records helps you reduce taxable income. Not sure how to track it? An Austin small business accountant can handle that for you.
2. Home Office Deduction: Your Work-from-Home Setup Could Save You Money
Running your business from home? You could qualify for the home office deduction.
What can you deduct?
- A portion of your rent or mortgage (based on office square footage).
- Business-related utilities, internet, and phone costs.
- Office furniture, storage, and supplies.
⚠ IRS Rule: Your home office must be used exclusively for business (so your couch doesn’t count).
Not sure if you qualify? An Austin tax accountant can make sure you claim this deduction the right way without IRS red flags.
3. Transaction Processing Fees: Every Swipe Costs You But It’s Deductible
You know those annoying transaction fees from Stripe, PayPal, and Shopify? They’re tax-deductible!
What fees can you write off?
- Shopify & Amazon seller fees.
- Credit card processing charges.
- PayPal & Stripe transaction fees.
Pro Tip: If you process high sales volumes, these fees add up fast. A CPA in Austin, Texas can help you track every dollar you’re spending on fees.
4. Software & Subscription Costs: Your Business Tools Are Tax Write-Offs
Running an eCommerce store means paying for a lot of digital tools and they’re ALL tax-deductible.
What you can write off:
- Shopify, Amazon, and Etsy platform fees.
- QuickBooks, A2X, Avalara, and TaxJar.
- Email marketing platforms (Klaviyo, Mailchimp).
- Website hosting, domain fees, and cybersecurity software.
Pro Tip: If you prepaid for an annual subscription, make sure it’s categorized correctly. An Austin accounting service can help maximize your deductions.
5. Shipping & Fulfillment Expenses: Every Package Counts
Shipping is a big expense but the good news? It’s fully deductible.
What qualifies?
- USPS, FedEx, and UPS shipping costs.
- Packaging materials, boxes, labels, and tape.
- Warehousing & fulfillment center fees (Amazon FBA, 3PL storage).
Pro Tip: Even return shipping costs can be deducted! Not sure how to track these properly? CPA firms in Austin Texas can help.
6. Marketing & Ad Spend: Growing Your Business? Write It Off!
Every dollar you spend to get more customers is tax-deductible.
What you can deduct:
- Facebook, Instagram, Google, and TikTok ads.
- Influencer sponsorships and affiliate commissions.
- SEO services, content creation, and branding.
Pro Tip: Don’t forget website design and development costs. They might be deductible, too! An Austin accounting firm can help you track it all.
7. Business Travel Expenses: Trade Shows & Supplier Visits Count!
If you’re traveling for business, those expenses could be tax write-offs.
What qualifies?
- Flights, hotels, and transportation for business trips.
- Meals & networking expenses (yes, that client dinner counts within reason).
- Trade show and conference tickets.
Pro Tip: Keep detailed receipts and notes on why the trip was business-related. CPA firms in Austin Texas can ensure these deductions stick.
Don’t Leave Money on the Table: Let’s Maximize Your Deductions!
Most eCommerce sellers overpay on taxes simply because they don’t know what they can deduct. Don’t let that be you!
At Insogna CPA, we help online sellers:
✔ Track every eligible deduction so you keep more profits.
✔ Ensure IRS compliance (because nobody wants a tax audit).
✔ Create a tax strategy that actually works for your business.
Don’t leave money on the table. Insogna CPA can help you maximize your deductions! Schedule a tax review today!
Whether you need an Austin, TX accountant, a CPA in Austin, Texas, or expert guidance from one of the best Austin accounting firms, we’ve got your back. Let’s do this!