bookkeeping tax

How do I claim my Etsy shipping label costs on my Schedule C?

This article discusses how shipping label costs from your Etsy sales can be claimed on your tax return.

Any costs you pay to send the customer your product are not typically included into COGS as it is not considered a direct cost of manufacture - this includes the costs of purchasing shipping via Etsy.

However, you can still claim your Etsy Shipping Labels costs as an indirect expense in the year it was incurred.

To do this, you’ll want to firstly find how much you have spent on Etsy Shipping Labels in the last tax year.

This total should then be listed in Part II of your Schedule C (see our Tips on how to complete a Schedule C for more details).

Tip: On your Schedule C, you’ll notice that there is no Postage or Shipping category, so you’ll want to either add your Etsy Shipping Label expense claim to Other Expenses or create your own Postage category on one of the available blank lines in Part II.

Nicole Pascoe Nicole Pascoe - Profile

Written by Nicole Pascoe

Nicole is the co-founder of Craftybase, inventory and manufacturing software designed for small manufacturers. She has been working with, and writing articles for, small manufacturing businesses for the last 12 years. Her passion is to help makers to become more successful with their online endeavors by empowering them with the knowledge they need to take their business to the next level.
bookkeeping etsy schedule-c
bookkeeping tax

Etsy Bookkeeping: Your Guide for Maker Success

Discover essential bookkeeping tips for Etsy sellers to manage finances effectively! Learn about inventory tracking, utilizing software like QuickBooks and Craftybase, understanding Etsy fees, and hiring financial help. Perfect for makers aiming for profitability and growth.