Sell on Etsy. Skip the year-end inventory panic.
TaxClover separates cost of goods from supplies, tracks platform fees and shipping, and keeps your quarterly estimate live.
Typical e-commerce & etsy sellers: Etsy · eBay · Amazon FBA · Shopify · handmade & print-on-demand sellers
E-commerce taxes hinge on one thing most sellers get wrong: cost of goods sold. Your profit isn't your payout — it's revenue minus what the inventory cost you. TaxClover keeps COGS, supplies, fees, and shipping in their own lanes, so your Schedule C reflects real profit and your quarterly estimate isn't built on the gross.
What e-commerce & etsy sellers write off most
TaxClover sorts each one onto the correct IRS line automatically. These are the big ones for your line of work.
Cost of goods sold
Materials and inventory you bought to make or resell products — the single biggest line for most sellers, computed in Part III.
Platform & payment fees
Etsy listing and transaction fees, eBay final-value fees, Amazon referral fees, and Stripe/PayPal processing.
Packaging & shipping supplies
Boxes, mailers, tape, labels, and the postage you pay to get orders to customers.
Advertising & promoted listings
Etsy Ads, eBay Promoted Listings, and social ads you run to drive traffic to your shop.
Marketplaces issue a 1099-K, and it reports gross sales — before fees, refunds, and shipping you collected. Reporting that number as profit massively overstates income. Track COGS and fees so your Schedule C shows what you actually made.
Everything a e-commerce & etsy seller needs to stay tax-ready
- A live quarterly estimate — federal, SE, and your state
- Schedule C expense tracking across all 22 IRS lines
- Mileage logging at the 2026 rates — 72.5¢, then 76¢ from July 1
- Receipt scanning that drafts a categorized expense
- 1099-NEC tracking and reconciliation by client
- A year-end bundle ready for your CPA or TurboTax
One plan, free while in beta. TaxClover doesn't file your taxes and isn't a substitute for a CPA — it makes sure you're ready for both.
E-commerce & Etsy sellers tax questions
What exactly is cost of goods sold?+
It's what your inventory cost you — materials, wholesale purchases, and direct production costs. Revenue minus COGS minus expenses is your taxable profit. TaxClover keeps COGS separate from ordinary supplies.
My 1099-K is way higher than my profit — is that wrong?+
No — a 1099-K shows gross processed payments. Your actual profit is far lower after COGS, fees, and shipping. TaxClover reconciles the 1099-K and builds your estimate on real profit.
Will I even get a 1099-K?+
Only if you clear both $20,000 in gross sales and 200 transactions — the threshold reverted to those figures for 2026. Plenty of sellers cross one but not the other and get no form at all. You still owe tax on every sale, which is why your own records matter more than the form.
Do I need to count unsold inventory?+
Inventory on hand at year-end affects your COGS calculation. TaxClover tracks the inputs; the year-end inventory figure is a quick CPA confirmation.
The April surprise is a choice. Stop choosing it.
It's free while we're in beta — no credit card. Log a week of income and see your real number. We'll give 30 days' notice before we ever charge.