Free for Etsy Sellers

You Pour Heart Into Every Handmade Piece. Your Bookkeeping Should Reflect That Same Care.

The free bookkeeping tool that helps Etsy sellers and handmade creators organize ordinary and necessary business expenses for Schedule C.

Download Free TemplateSee What You Can Deduct
60+
Business Types
6 Tabs
Per Template
500+
Transaction Rows
$0
Completely Free

Tax Deductions You May Be Missing

These are common Schedule C business expenses that etsy sellers may be able to claim under IRC §162. Our template has them pre-loaded.

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Craft Supplies

Line 38 (COGS)

Fabric, beads, wood, resin, paint, yarn, raw materials.

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Etsy Fees

Line 10

Listing ($0.20), transaction (6.5%), payment processing, Etsy Plus.

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Shipping Materials

Line 22

Boxes, bubble mailers, tissue paper, tape, labels, postage.

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Packaging & Branding

Line 22

Custom packaging, stickers, thank you cards, branded tape.

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Product Photography

Line 8

Lightbox, camera, props, editing software.

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Etsy Ads

Line 8

Etsy Ads, Offsite Ads (15% fee), social media.

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Software

Line 18

Marmalead, eRank, Canva, Pirate Ship.

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Home Studio

Line 20b

Dedicated workspace, craft table, storage.

How It Works

1

Download

Pick your business type. Get a free template. No signup.

2

Categorize

Enter your bank transactions. Pick from the dropdown. ~30 min.

3

Review

Schedule C summary auto-calculates your income, expenses, and tax.

4

File

Hand it to your Enrolled Agent. Or let Arc & Ledger prepare your return from $300.

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Get Your Free Etsy Seller Template

We'll email your template directly — open it in Excel or upload to Google Sheets. No software to install.

What's Inside

✓ Start Here tab with step-by-step instructions
✓ Business Info tab — your details, ready for filing
✓ Expense categories pre-loaded for your industry
✓ 500-row transaction tracker with dropdown categories
✓ Schedule C summary — auto-calculates your totals
✓ Monthly summary for quarterly estimated taxes

We'll email your template directly. No spam, unsubscribe anytime.

ENROLLED AGENT TAX SERVICES

Too Busy to DIY?
We'll Handle Everything.

Arc & Ledger is a tax and bookkeeping firm led by Enrolled Agents — authorized to prepare your return and represent you directly before the IRS. Over 10 years helping self-employed professionals like you.

✓ Schedule C tax preparation from $300
✓ Monthly bookkeeping from $200/mo
✓ S-Corp election & tax planning
✓ Authorized to represent you before the IRS
✓ Enrolled Agents — pass rigorous IRS exam
✓ 10+ years serving self-employed professionals
arcandledger.com | (310) 876-0249
bookkeeping@arcandledger.com | Culver City, CA

Get Your Price in 30 Seconds

Question 1 of 4

What income did you have in 2025?

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Need to File for Free? The IRS Can Help.

If you earned under $84,000, you may qualify for IRS Free File — free tax preparation software provided through an IRS partnership. No cost, no catch.

✓ IRS Free File — guided software for income under $84,000
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Visit IRS Free File Options →

Our free template works alongside any filing method — use it to organize your expenses first, then file however works best for you.

Common Questions

What Schedule C deductions can Etsy sellers claim?+
Self-employed Etsy sellers may deduct ordinary and necessary business expenses under IRC Section 162. Commonly claimed deductions include craft supplies (Line 38 COGS), Etsy fees (Line 10), shipping materials (Line 22), packaging and branding (Line 22), product photography (Line 8), Etsy ads (Line 8), and home studio costs (Line 20b). Your tax situation may vary, so consult a qualified tax professional for personalized guidance.
What is Schedule C?+
Schedule C (Form 1040) is the IRS form where sole proprietors and single-member LLCs report business income and expenses. It calculates your net profit or loss, which flows to your Form 1040. Etsy sellers use Schedule C to report product sales and deduct business expenses like materials, fees, and shipping. Our free template is an organizational tool that categorizes expenses by the correct Schedule C line numbers.
How much tax do self-employed Etsy sellers pay?+
Self-employed Etsy sellers generally pay both income tax and self-employment tax (15.3% for Social Security and Medicare) on net profit. Your income tax rate depends on your total taxable income and filing status. The self-employment tax applies to net earnings over $400. Many Etsy sellers may also have state sales tax obligations. Consult a qualified tax professional to understand your specific tax obligations.
Do I need to file quarterly estimated taxes as an Etsy seller?+
If you expect to owe $1,000 or more in federal tax for the year, the IRS generally requires quarterly estimated tax payments. Deadlines are typically April 15, June 15, September 15, and January 15. Etsy income often peaks around holidays, so tracking expenses year-round helps you estimate quarterly payments more accurately.
Are Etsy listing fees, transaction fees, and Offsite Ads deductible?+
Etsy listing fees, transaction fees, payment processing fees, and Offsite Ads commissions may be deductible as ordinary and necessary business expenses on Schedule C Line 10 (commissions and fees) or Line 8 (advertising). Keep records of all Etsy fee statements. Etsy Plus subscription costs may also be deductible. Consult a qualified tax professional for your specific situation.
Should I hire an Enrolled Agent or do my own taxes?+
An Enrolled Agent (EA) is a tax professional who has passed a rigorous IRS exam and is authorized to represent taxpayers directly before the IRS. Unlike other preparers, EAs must pass a rigorous exam and complete continuing education annually. For Etsy sellers with handmade inventory, platform fees, and home studio deductions, an EA can help ensure compliance and identify all eligible deductions. Arc & Ledger's team of Enrolled Agents specializes in Schedule C businesses.

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