Save on 1099 taxes as an Online Seller

Can online sellers deduct expenses from their taxes?

In short, absolutely. In fact, you might be surprised at just how many tax deductions for online sellers there are. One of the most satisfying parts of owning your own online business is that you have full control over every aspect. It also means you're responsible for every aspect of your taxes when it comes time to file because there is no employer to make automatic deductions for you.

How can online sellers know what expenses can be deducted?

Luckily, there are powerful tools out there that use A.I. to help you know what to deduct and help you write off seller fees fast and with complete accuracy.

Did you know that if you have a business selling online, you can write off a portion of your rent or mortgage payment? Or your car mileage? Even credit card debt can be tax-deductible.

If you're an online seller or someone who owns a business that makes income by selling products or services on the internet, deductions like these can have a huge impact on your bottom line when it comes time to pay your taxes. But they can also be confusing if you're new to owning your own business, or you don't yet know how to apply the traditional deductions to an online model.

What are the key tax deductions for online sellers?

You might be thinking that a business that only exists online might be limited to fewer deductions than a traditional business. Nope. It turns out, if you do things right, you shouldn't end up owing much at all. The list should help you with the most important deductions — and if you're ever unsure whether an expense can be a write-off, ask a qualified CPA.

• Marketing and advertising:

  - Every dollar you spend getting the word out about your business is a deductible expense. Facebook ads, Google Adwords, ads in digital and online publications, and email software like Mailchimp are all expenses you can deduct.

• Shipping and packaging:

  - Getting your products to your customers reliably is essential to running a successful business, and it's an expense that's completely deductible. That includes postage, delivery charges, dropshipping fees, and packaging materials.

• Card payment processing fees:

  - That 2.75% fee you pay on every purchase a customer makes with you adds up to a significant expense for you, but it's deductible!

• Home office expenses:

  - Running your business from home means there is a whole spectrum of home office deductions you can make. From WiFi to rent and cleaning supplies to home repairs, we've put together a complete list of self-employed Home office deductions

• Phone and internet:

  - Like your home WiFi, you can write off part of your personal cell phone bill. Here's more on the cell phone and internet tax deduction.

• Car expenses:

  - The number of car-related expenses you can deduct from your taxes is surprisingly high, but the easiest way to save on your taxes is by tracking your mileage and taking the mileage deduction at tax time.

• Photography equipment:

  - Everyone knows that really rich images of products increase sales. Any photography or videography equipment you buy for your business can be deducted from your taxes.

• Industry education:

  - It's probably not news to you that industries and markets are always changing. To be successful, you need to stay on top of trends through regular workshops and seminars and the latest reference materials. Here's how to deduct education expenses

• Interest expenses:

  - Nobody likes paying interest, but at least you can write it off. That's right, credit card debt is tax-deductible, and so is student loan interest, finance charges, and other business loan interest.

• Travel expenses:

  Need to travel for work? Anything you do for your business during a trip is an expense that can be written off: airfare, lodging, ground transportation, conference fees, and more.

Don't forget to pay quarterly taxes

The federal government wants self-employed people to pay their taxes as they go, rather than all at once at the end of the year. These four tax payments, made every three months, cover social security, Medicare, and your income tax. Here's a tried-and-true estimated tax calculator to make staying on top of your taxes super simple.

Information overload?

Figuring out everything that can be deducted from your taxes saves you money every time, but it can be a lot to remember and take a lot of time. FlyFin does most of that work for you. The app is powered by AI and backed by our licensed CPAs, who you can consult at any time to make sure you don't leave any money on the table.