You’ve built your eCommerce business, put in the late nights, and watched your sales grow. But when tax season rolls around, does it feel like all your hard work is just funding the IRS? If you’re not maximizing your deductions, you could be leaving thousands of dollars on the table.
At Insogna CPA, a top Austin, Texas CPA firm, we help eCommerce sellers keep more of their money while staying tax-compliant. Let’s break down the most overlooked tax deductions, how to track them properly, and why a proactive tax strategy is the key to paying less.
Know What You Can Deduct And Take Advantage of It
Not all expenses are created equal. Some put money back in your pocket, while others just drain your profits. The key? Knowing what’s deductible and making sure you claim it.
1. Home Office Deduction
If you’re running your store from home, you could be writing off part of your rent, utilities, and internet as long as you have a dedicated workspace.
Pro Tip: The IRS won’t let you deduct your couch, but that spare bedroom-turned-warehouse? Now we’re talking.
2. Shipping & Delivery Costs
Every box you send out is an expense. That means postage, packaging, shipping insurance, and tracking costs are all deductible.
Make sure you’re tracking:
✔ USPS, FedEx, UPS costs.
✔ Packing materials (boxes, tape, labels).
✔ Fees for expedited shipping or return handling.
2. Merchant & Payment Processing Fees
Shopify, Etsy, Amazon, Stripe, PayPal—they all take their cut. Luckily, those transaction fees are tax-deductible.
✔ Every little percentage adds up. Deduct them to shrink your tax bill.
3. Marketing & Advertising Costs
The money you spend to get your brand in front of customers is deductible.
✔ Facebook, Instagram, Google Ads.
✔ Branding, logo design, photography, and influencer collaborations.
✔ Email marketing software like Klaviyo or Mailchimp.
Pro Tip: If you paid an influencer to promote your product, that’s marketing—write it off!
4. Inventory Costs (But Only When You Sell It!)
Inventory isn’t deducted when you buy it—it’s deducted when you sell it as part of Cost of Goods Sold (COGS).
✔ Keep good records of what you buy, what you sell, and what’s left in stock.
✔ If you store inventory at a fulfillment center or warehouse, those fees are deductible too.
5. Business Travel & Education
If you travel for trade shows, supplier meetings, or industry conferences, your flights, hotels, and business meals are deductible.
✔ Flights, hotel stays, and rental cars.
✔ 50% of business-related meals.
✔ Online courses, coaching programs, or business books.
How Insogna CPA Helps: We’ll organize your expenses so you’re claiming every possible deduction without the IRS side-eyeing you.
Bookkeeping: The Secret to Bigger Deductions
You know what’s worse than overpaying on taxes? Overpaying because your books are a mess.
If your receipts are scattered, your inventory isn’t tracked, or your transactions are mixed with personal expenses, you could be missing out on deductions you rightfully deserve.
How Clean Books = More Tax Savings:
✔ You track every deductible expense in real-time.
✔ You avoid IRS audits by keeping your records organized.
✔ You make tax season painless—no scrambling, no stress.
Bookkeeping Tips for eCommerce Sellers:
✔ Use QuickBooks or Xero to track income & expenses automatically.
✔ Keep digital copies of receipts (apps like Expensify make it easy).
✔ Hire an Austin small business accountant (like us!) to clean up your books and find hidden savings.
Why Work With Us? At Insogna CPA, we offer monthly bookkeeping services so you can focus on growing your business, not sorting receipts.
Plan Ahead to Legally Lower Your Taxes
Most business owners think about taxes in April. Smart business owners start planning in January.
A proactive tax strategy can save you thousands every year. Instead of just preparing your tax return, we help you reduce your taxable income legally.
Here’s How Tax Planning Saves You Money:
✔ Quarterly Estimated Taxes – Avoid IRS penalties by paying the right amount throughout the year.
✔ Income Distribution – Structure your salary and business income to minimize self-employment tax.
✔ Retirement Contributions – Use a SEP IRA or Solo 401(k) to reduce your taxable income while saving for the future.
How Insogna CPA Helps: We’re not just tax preparers, we’re tax strategists. We help eCommerce sellers create a plan to pay less and keep more.
The Real Cost of Missing Deductions? Overpaying the IRS
Let’s do some math. If you miss $10,000 in deductions and your tax rate is 25%, that’s $2,500 extra you just handed to the IRS.
Do that for a few years, and you’ve lost tens of thousands of dollars that could have gone toward:
- Scaling your business.
- Launching new products.
- Taking that vacation you’ve been dreaming about.
Why give the IRS more than you need to?
Let’s Make Sure You’re Keeping More of Your Profits
At Insogna CPA, we specialize in helping eCommerce business owners like you maximize deductions, reduce taxable income, and stay compliant. Whether you’re a Shopify seller, Amazon FBA entrepreneur, Etsy shop owner, or independent eCommerce brand, we’ve got your back.
📞 Tired of overpaying on taxes? Contact Insogna CPA today and let’s start saving you money!