Receipt Scanner & Expense Tracker for Online Sellers
Selling on Etsy, eBay, or Shopify means inventory, shipping, and fees are all deductible. NeoReceipt scans your supplier and shipping receipts and files them into Schedule C so your margins stay healthy at tax time.
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Key takeaways
- Online sellers file a Schedule C and pay self-employment tax on net profit.
- Inventory, shipping, packaging, and platform fees are core deductions.
- Marketplaces may send a 1099-K; report actual income and expenses regardless.
- Good records protect your margins and your deductions at tax time.
Deductions Etsy, eBay, and Shopify sellers can track
NeoReceipt sorts each receipt into the matching IRS Schedule C category.
Inventory and materials
Products and raw materials
Shipping and postage
Labels, carriers
Packaging supplies
Boxes, mailers, tape
Platform and payment fees
Etsy, eBay, Stripe, PayPal
Product photography
Props, lighting
Home office and storage
Workspace and inventory space
Software and apps
Listing and accounting tools
Mileage to ship
Trips to the post office
Estimate what you'll owe with the 1099 tax calculator and self-employment tax calculator.
How are online sellers taxed?
Selling on Etsy, eBay, or Shopify is a business, so you report sales on Schedule C, subtract your costs, and pay self-employment tax of 15.3 percent plus income tax on the profit. Marketplaces and payment processors may send a 1099-K summarizing your gross sales, but you report your actual income and expenses, which is usually far lower than gross once fees and inventory are subtracted. Since nothing is withheld, quarterly estimated payments are generally expected.
Are Etsy, eBay, and platform fees deductible?
Yes. Listing fees, transaction fees, and payment-processing fees from Etsy, eBay, Shopify, Stripe, and PayPal are fully deductible business expenses, and they add up quietly across hundreds of orders. These charges arrive electronically, so connect Gmail or forward the statements to your NeoReceipt inbox address and each is captured and categorized for you, ensuring you deduct the full amount rather than guessing at year-end.
Tracking inventory, shipping, and supplies
Inventory and raw materials, shipping and postage, and packaging supplies like boxes, mailers, and tape are central deductions for sellers. Product photography props, storage space, and listing software count too, along with mileage to the post office. Snap supplier and shipping receipts with NeoReceipt as they come in, and the app reads the amount and files it under the right Schedule C category, so your cost of goods and operating expenses are documented without spreadsheet busywork.
Common tax mistakes online sellers make
Sellers often pay tax on gross 1099-K amounts without subtracting fees and inventory, lose track of small packaging and supply costs, and forget mileage to ship. Others mix personal and business purchases or skip quarterly payments. Capturing every supplier, shipping, and fee receipt as it happens gives you an accurate cost picture, protects your margins, and turns the 1099-K from a scary number into a documented, deductible reality.
From receipt to deduction in seconds
Snap or upload
Photograph any receipt, or forward email receipts to your inbox address.
AI categorizes it
We read the merchant, date, and total, then assign the right Schedule C line.
Export at tax time
Download a clean CSV grouped by category for you or your accountant.
Built for Etsy, eBay, and Shopify sellers
Stop leaving deductions in a shoebox. NeoReceipt captures every receipt and keeps your Schedule C totals ready all year.
Get started freeFrequently asked questions
What can online sellers deduct?+
Inventory and materials, shipping and postage, packaging, platform and payment fees, product photography, home office and storage, software, and mileage to ship are common Schedule C deductions for sellers.
Are Etsy and eBay fees deductible?+
Yes. Listing, transaction, and payment-processing fees are fully deductible business expenses. NeoReceipt can pull these from your email receipts automatically.
Do I owe taxes on online sales?+
You owe income and self-employment tax on net profit (sales minus expenses). Marketplaces may also issue a 1099-K. Track expenses to lower the taxable amount.