Is it deductible?
Check any Shopify expense — with the IRS citation.

All 153 expenses, with the code section behind each

The full list this checker searches. Educational only — not tax advice.

Platform & core software subscriptions

Shopify plan subscription

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Shopify App Store apps (general)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Website theme (Shopify Theme Store / ThemeForest)

It depends — ask your CPA. It depends — a small off-the-shelf theme is generally deductible as software; a large custom theme build may be capitalized. Ask your CPA (§263(a); Reg. §1.263(a)-4 · Pub 334)

Web hosting (landing pages / blog)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Domain registration & renewal

Ask your CPA. Routine registration/renewals deductible. Buying a premium domain is a capital asset — ask your CPA. (§162 · Pub 334)

Canva Pro

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

QuickBooks Online

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Xero

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Sales tax automation software (TaxJar / Avalara / Shopify Tax)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Google Workspace

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Microsoft 365

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Adobe Creative Cloud

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Zoom

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Slack

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

AI tool subscription (ChatGPT / Claude)

Deductible — conditions apply. Generally deductible with specific requirements — only the business-use portion; a reasonable allocation is expected. (§162(a) · Pub 334 ch.8)

Password manager (1Password etc.)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Cloud storage (Dropbox / Google One, business use)

Deductible — conditions apply. Generally deductible with specific requirements — only the business-use portion; a reasonable allocation is expected. (§162(a) · Pub 334)

Advertising & marketing

Meta (Facebook / Instagram) Ads

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Google Ads

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

TikTok Ads

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Pinterest Ads

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Snapchat Ads

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Amazon Sponsored Products

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Klaviyo (email/SMS marketing)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Postscript (SMS marketing)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Mailchimp

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Influencer fee (paid cash for promotion)

Generally deductible. Generally deductible as ordinary & necessary (§162; §6041; 1099-NEC instrs · Pub 334)

UGC creator fee

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Affiliate commissions paid

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Influencer / PR product samples (your product, gifted)

It depends — ask your CPA. It depends — gifting your own product mixes inventory, marketing, and gift rules, so the right treatment is a genuine CPA call (§274(b); Reg. §1.274-3 · Pub 334)

Branded swag & giveaway merchandise

Deductible — conditions apply. Promotional items distributed broadly are advertising; items to specific individuals may hit the business-gift limit. (§274(b)(1) · Pub 463 ch.3)

PR agency retainer

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Podcast sponsorship

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Product photographer

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Stock photos / licensed images (Shutterstock etc.)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

SEO tools (Ahrefs / Semrush)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Payment processing & financial

Shopify Payments processing fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Stripe processing fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

PayPal merchant fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

BNPL merchant fees (Affirm / Afterpay / Klarna)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Chargeback / dispute fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Business bank account fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Wire / FX fees paying an overseas supplier

It depends — ask your CPA. It depends — these can count as part of your inventory cost or as a bank fee, depending on your accounting method; ask your CPA (Reg. §1.471-3(b); §263A(i) · Pub 334)

Business credit card annual fee

Deductible — conditions apply. Deductible on a business-use card; personal-card fee isn't. (§162 · Pub 334)

Business loan / Shopify Capital interest

It depends — ask your CPA. It depends — true interest is deductible; the Shopify Capital fee character/timing is a CPA call. (§163 · Pub 334)

Currency conversion fees (Shopify / PayPal)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Third-party payment gateway transaction fees (non-Shopify Payments)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Customer refunds & returns issued

Not an expense. Not an expense — refunds reduce your gross receipts (contra-revenue); they don't go in the expense pile. (§61; Reg. §1.61-3(a); Sch. C (Form 1040) instr., line 2 · Pub 334)

Inventory, COGS & product sourcing

Alibaba supplier payment (inventory)

Inventory — deduct via COGS when sold. Inventory cost — recovered through cost of goods sold when items sell. (§471 / §263A · Pub 334 (COGS) / Pub 538)

1688.com supplier payment (inventory)

Inventory — deduct via COGS when sold. Inventory cost — recovered through cost of goods sold when items sell. (§471 / §263A · Pub 334 (COGS) / Pub 538)

Domestic wholesale supplier (inventory)

Inventory — deduct via COGS when sold. Inventory cost — recovered through cost of goods sold when items sell. (§471 / §263A · Pub 334 (COGS) / Pub 538)

Faire wholesale purchases

Inventory — deduct via COGS when sold. Inventory, not opex — recovered through COGS as items sell; your §471(c) method controls timing. (§471 · Pub 334 ch.2/6)

Printful (print-on-demand fulfillment)

Inventory — deduct via COGS when sold. Produced only after the order — costs are COGS in the period of sale. (§471 · Pub 334 ch.6)

Printify (print-on-demand)

Inventory — deduct via COGS when sold. Produced only after the order — costs are COGS in the period of sale. (§471 · Pub 334 ch.6)

Raw materials for handmade products

Inventory — deduct via COGS when sold. Not expensed when purchased, even under §471(c)/NIMS — COGS when the finished product sells. (Reg. §1.471-1(b)(4) · Pub 334 (COGS) / Pub 538)

Inbound freight from supplier (freight-in)

Inventory — deduct via COGS when sold. Inventory cost — recovered through cost of goods sold when items sell. (§263A · Pub 334 (COGS) / Pub 538)

Customs duties & import tariffs

Inventory — deduct via COGS when sold. Inventory cost — recovered through cost of goods sold when items sell. (§263A · Pub 334 (COGS) / Pub 538)

Customs broker fees

It depends — ask your CPA. It depends — broker fees may belong in inventory cost or count as a period expense, depending on your method; ask your CPA (Reg. §1.471-3(b); §162 · Pub 334)

Third-party QC inspection (pre-shipment)

It depends — ask your CPA. It depends — inspection costs may belong in inventory cost or count as a period expense, depending on your method; ask your CPA (§471 / §162 (Reg. §1.174-2(a)(6) blocks R&E path) · Pub 334)

Product molds & tooling

Ask your CPA. Capital equipment — often fully deductible year one via expensing elections, or depreciated; ask your CPA which. (§263(a) / §168 / §179 · Pub 946)

Pre-production samples from supplier

It depends — ask your CPA. It depends — samples you keep, sell, or give away each take a different tax path; ask your CPA (§162 / §471 / §274 · Pub 334)

Product development / prototyping

Ask your CPA. For a typical reseller this is usually not §174 research — more often a currently deductible design cost or a capitalized product cost. If it is domestic R&E, §174A (2025 law) now allows current expensing; ask your CPA. (§174A; Rev. Proc. 2025-28 · Pub 334)

3PL storage fees (warehousing)

Deductible — conditions apply. Generally deductible — small sellers are exempt from the UNICAP rules (§263A(i)). (§263A(i) · Pub 334)

GS1 barcode / UPC fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Product safety testing & certification (e.g. CPSC)

Generally deductible. Ordinary compliance expense. (§162 · Pub 334)

Shipping, fulfillment & packaging

USPS postage (outbound orders)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

UPS shipping

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

FedEx shipping

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

DHL shipping

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Pirate Ship label purchases

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Shippo label purchases

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

ShipStation (subscription + labels)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

ShipBob fulfillment (pick/pack) fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

ShipMonk fulfillment fees

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Returns postage / prepaid return labels

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Shipping boxes & poly mailers

Deductible — conditions apply. Current supplies. (Packaging integral to the product itself belongs in COGS.) (§162; §263A(i) · Pub 334 ch.6)

Branded tissue, stickers, package inserts

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Shipping insurance (Route / carrier insurance)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Store apps & customer-experience tools

Loox (photo reviews)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Judge.me (reviews)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Yotpo (reviews / loyalty)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Gorgias (helpdesk)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Zendesk (support)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Recharge (subscriptions)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

AfterShip (tracking)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Loop Returns (returns management)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Triple Whale (analytics)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

PageFly (landing-page builder)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Rewind (store backups)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Tidio (live chat)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Contractors, people & professional services

Fiverr contractor payments

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Upwork contractor payments

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Freelance graphic designer

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Virtual assistant (incl. overseas)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Bookkeeper

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Accountant / CPA fees (business work)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Personal tax-return preparation fee

Deductible — conditions apply. Deductible — only the portion for preparing the business part of your return. (§162 · Pub 334 ch.8)

Business attorney fees

Deductible — conditions apply. Generally deductible; fees to start the business or acquire assets are generally capitalized/amortized instead. (§162; §195/§263 · Pub 334)

Payroll service (Gusto / ADP)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Employee wages & employer payroll taxes

Deductible — conditions apply. Generally deductible — for bona fide employees (not payments to yourself as a sole proprietor). (§162(a)(1) · Pub 15 / Pub 334)

Business coach / mentor program

Deductible — conditions apply. Deductible — must maintain or improve skills in your existing business. (§162 · Pub 334)

Translation / localization services

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Professional / trade association dues

Deductible — conditions apply. Generally deductible for professional and trade associations — social, athletic, or country club dues are not deductible. (§162; §274(a)(3) · Pub 334)

Office, workspace & equipment

Home office (dedicated business space)

Deductible — conditions apply. Generally deductible with specific requirements — regular and exclusive business use; simplified or actual method. (§280A(c) · Pub 587)

Coworking membership (WeWork etc.)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Office supplies (paper, ink, pens)

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Laptop / computer

Deductible — conditions apply. Deductible to business-use extent, often fully year-one via elections; mixed use changes the math. (§168 / §179; Reg. §1.263(a)-1(f) · Pub 946)

Label printer (Rollo / Dymo)

Deductible — conditions apply. Often fully deductible year one — the de minimis safe harbor is one route (it needs written accounting procedures in place at the start of the year, matching book treatment, and the annual election statement); §179 or bonus depreciation are others. (Reg. §1.263(a)-1(f); §179 · Pub 334 / Pub 946)

Thermal labels & printer supplies

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Camera & lighting for product photos

Deductible — conditions apply. Deductible to business-use extent; heavy personal camera use triggers stricter (listed-property) rules. (§162 / §262; §168; §280F · Pub 946)

Office furniture / desk / chair

Deductible — conditions apply. Usually fully deductible year one via expensing elections, else depreciated. (§168 / §179 · Pub 946)

Cell phone bill (business percentage)

Deductible — conditions apply. Generally deductible with specific requirements — only the business-use portion. (No longer listed property.) (§162; Notice 2011-72 · Pub 334)

Home internet (business percentage)

Deductible — conditions apply. Generally deductible with specific requirements — only the business-use portion. (§162 · Pub 334 / Pub 587)

Warehouse / storage-unit rent

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Utilities for dedicated commercial space

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Small tools & equipment (under de minimis)

Deductible — conditions apply. Often currently deductible — the de minimis safe harbor is one route (the annual election statement is attached to the return); other routes exist. (Reg. §1.263(a)-1(f) · Pub 334)

Travel, meals & vehicle

Team lunch (working meal with staff/contractors)

50% deductible. Generally 50% deductible (§274(n) · Pub 463)

Office coffee, snacks & break-room food

Generally not deductible. Generally not deductible — employer-provided office food and beverages, employer-operated eating facilities, and convenience-of-employer meals are 0% deductible for amounts paid after 12/31/2025. (§274(o); §132(e) · Pub 15-B)

Meal with supplier / vendor / business contact

50% deductible. Generally 50% deductible — not lavish, business purpose, you present. (§274(n),(k) · Pub 463)

Solo lunch during a normal workday (not traveling)

Generally not deductible. Generally not deductible — the rules treat an everyday solo meal as a personal cost, even on a workday. (§262 · Pub 463)

Client entertainment (game / concert tickets)

Generally not deductible. Generally not deductible — since the 2018 tax-law change, business entertainment like game or concert tickets no longer qualifies, even with a client. (§274(a) · Pub 463)

Business travel airfare (e.g. to a trade show)

Deductible — conditions apply. Deductible — overnight travel away from home, primarily business. (§162(a)(2) · Pub 463 ch.1)

Hotel / lodging on a business trip

Deductible — conditions apply. Generally deductible with specific requirements (§162 / §274(d) · Pub 463)

Meals while traveling for business

50% deductible. 50% of non-lavish meals while traveling for business. (§274(n) · Pub 463)

Trade show booth fee

Generally deductible. Ordinary marketing expense. (§162(a) · Pub 334)

Trade show / conference registration

Deductible — conditions apply. Deductible — must benefit your existing business (special rules outside North America). (§162(a); §274(h) foreign · Pub 463)

Mileage — post office runs, supply runs, local deliveries

Deductible — conditions apply. Generally deductible with specific requirements — the drive counts only if your home qualifies as your principal place of business, or you're driving between business locations; standard mileage rate or actual expenses + contemporaneous log. (Rev. Rul. 99-7; Rev. Proc. 2019-46; §274(d) · Pub 463)

Parking & tolls on business trips

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 463)

Commuting to your own office/warehouse

Generally not deductible. Generally not deductible — the trip between home and your regular workplace is treated as personal, whatever you're hauling. (§262 · Pub 463 ch.4)

Legal, insurance, taxes & compliance

LLC state filing fee (formation)

Ask your CPA. §195 start-up rules apply; small amounts often deductible year one; ask your CPA. (§195 · Pub 583)

Registered agent annual fee

Deductible — conditions apply. Pre-opening = start-up cost (§195), typically deductible year one; after launch = ordinary. (§195 · Pub 583)

State annual report / franchise tax

Deductible — conditions apply. Deductible business taxes/expenses on Schedule C. (§162 / §164(a) · Pub 334)

Business license / seller's permit

Deductible — conditions apply. Start-up cost (§195) if pre-launch, otherwise an ordinary deduction (Sch C line 23). (§195; §162 · Pub 334)

Trademark registration + related legal fees

Capitalized — not an immediate write-off. Capitalized and written off over 15 years (§197). (§197(d)(1)(F)/(c)(2); Reg. §1.263(a)-4(d)(5) · Pub 334 / Pub 946)

General liability / BOP insurance

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Product liability insurance

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Cyber / tech E&O insurance

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Self-employed health insurance premiums

Not a Schedule C expense. Not a Schedule C expense — deductible as a personal adjustment (Schedule 1 / Form 7206), limited to business profit. (§162(l) · Form 7206 instructions / Pub 334)

Sales tax collected from customers & remitted

Not an expense. Not a business expense — sales tax imposed on the buyer that you collect and remit is neither your income nor your deduction. (A few states impose the tax on the seller instead — there it does go in gross receipts and is deductible; ask your CPA.) (Sch. C (Form 1040) instr., line 23; §164(a) · Pub 334)

IRS / state penalties & fines

Generally not deductible. Generally not deductible — the tax code specifically disallows government fines and penalties. (§162(f) · Pub 334)

Self-employment tax

Not a Schedule C expense. Not a Schedule C expense — half is deductible as a personal-return adjustment, none as a business expense. (§164(f) · Pub 334)

Retirement contributions for yourself (Solo 401(k) / SEP-IRA)

Not a Schedule C expense. Not a Schedule C expense — your own retirement contributions are a personal-return adjustment (Schedule 1); contributions for employees are a business expense. (§404 / §408 · Pub 560)

Federal / state income tax payments (incl. quarterly estimates)

Generally not deductible. Generally not deductible — not business expenses. (§275(a)(1) · Pub 334)

Education, gifts & honest "it depends" entries

E-commerce course / paid mastermind

Deductible — conditions apply. Deductible only for skills in a business you already run, not a new one. (§162 (Reg. 1.162-5); §195 · Pub 334)

Business books & industry publications

Generally deductible. Generally deductible as ordinary & necessary (§162 · Pub 334)

Industry conference ticket

Deductible — conditions apply. Deductible — must benefit your existing business (special rules outside North America). (§162(a); §274(h) foreign · Pub 334 / Pub 463)

Clothing / outfits bought for content creation

Generally not deductible. Generally not deductible — everyday-wearable clothing is personal (narrow costume/uniform exceptions). (§262 (+ Pevsner-line case law) · Pub 334)

Hair, makeup, grooming for photo/video shoots

Generally not deductible. Generally not deductible — personal grooming stays personal in the tax rules, even when it's for a shoot. (§262 · Pub 334)

Gym membership

Generally not deductible. Generally not deductible — general health and fitness costs are personal, even when they help you show up for work. (§262; §274(a) · Pub 334)

Client / customer gifts

Deductible — conditions apply. Generally deductible with specific requirements — a statutory per-recipient annual dollar limit under §274(b) applies. (§274(b) · Pub 463)

Donating unsold inventory to charity

Not a Schedule C expense. Not a Schedule C expense — a personal itemized deduction (Schedule A), generally limited to cost, which must come out of COGS. (§170 · Pub 526 / Pub 334)

Political contributions / lobbying

Generally not deductible. Generally not deductible — political contributions and lobbying costs are specifically excluded. (§276 / §162(e) · Pub 334)

Owner's draw / paying yourself (sole prop / SMLLC)

Generally not deductible. Not a deductible expense — a sole prop or single-member LLC is taxed on its profit, so paying yourself isn't a separate deduction. (S-corp owner wages work differently.) (Sch. C (Form 1040) instr., line 26; §162(a)(1) · Pub 334 ch.8)