Expense Tracker for Etsy Sellers
Etsy fees, supplies, COGS, and 1099-K — all in one place.
Etsy sellers have a unique mix of deductions: platform fees split across multiple lines, physical product COGS, shipping costs, and advertising. CentSense auto-maps every receipt to the right Schedule C line and keeps your shops separated with client projects.
Etsy Fee Deductions: Where They Go on Schedule C
| Fee Type | Schedule C Line | Example |
|---|---|---|
| Listing fee ($0.20/item) | Line 10 | $20 for 100 new listings |
| Transaction fee (6.5%) | Line 10 | $65 on $1,000 in sales |
| Payment processing fee | Line 10 | ~3% of payment volume |
| Offsite Ads fee (12–15%) | Line 8 | Charged when ad drives a sale |
| Shipping labels (Etsy) | COGS or Line 22 | Depends on product vs. service |
All of these are 100% deductible as ordinary business expenses. CentSense recognizes Etsy fee receipts and assigns the correct line automatically.
COGS: Tracking Your Inventory Costs
Product-based Etsy sellers must track Cost of Goods Sold on Schedule C Part III (Lines 36–42). This is separate from operating expenses.
What goes into COGS:
- Raw materials and supplies used to make your products
- Packaging materials
- Components and parts purchased for resale
How to track it:
- Scan every materials purchase receipt into CentSense
- Tag it as "COGS / Inventory"
- At year-end, note your opening and closing inventory value
The formula: Opening Inventory + Purchases − Closing Inventory = COGS
Full guide to expense tracking for Etsy sellers →
1099-K in 2026: What to Expect
Etsy will send a 1099-K if your gross sales exceed $600 in 2026. This is the federal threshold after years of IRS delays.
Important: The 1099-K shows gross sales, not net profit. You report the full amount as income, then deduct all your expenses on Schedule C to arrive at the taxable number.
If you sell on multiple platforms (Etsy + Shopify, for example), each platform sends its own 1099-K. Use CentSense client projects to keep expenses separated per platform.
Multiple Shops? Use Client Projects
The Solo plan's client projects feature ($5/month) lets you create a separate expense bucket per Etsy shop. Every receipt, mileage entry, and category rolls up cleanly per shop — so you always know which shop is profitable.