Shipping & Packaging Supplies
Postage, boxes, packing materials, and shipping costs for merchandise and business materials.
Tax Form
Schedule C, Line 22 or Line 39 (COGS)
Estimated Savings
$100-2,000/year
How It Works
Shipping and packaging expenses for your content business are fully deductible. This includes postage, shipping boxes, packing materials, labels, envelopes, tape, and delivery charges (USPS, FedEx, UPS). If you sell merchandise, shipping costs to customers are typically part of Cost of Goods Sold. Shipping for general business materials goes on Line 22 as supplies.
IRS Rules & Requirements
- Shipping for merchandise sales: Report as Cost of Goods Sold (Schedule C, Part III)
- General business shipping: Report as supplies (Schedule C, Line 22)
- Boxes, tape, packing materials, and labels are all deductible
- Cannot deduct if someone else paid or you were reimbursed
- Keep shipping receipts and tracking numbers
Real Examples
Shipping merchandise to customers at $2,000/year = COGS deduction
Packing materials and boxes at $300/year = fully deductible
USPS and FedEx charges for business mailings = fully deductible
Common Mistakes to Avoid
- Not categorizing merch shipping correctly as COGS
- Forgetting to deduct packing materials separately from postage
- Missing deduction for packaging supplies bought in bulk
- Not keeping shipping receipts
Pro Tip
If you sell merchandise, track shipping costs separately as Cost of Goods Sold - this is separate from your regular business expense deductions and affects your gross profit calculation.
Related Deductions
Merchandise Production Costs
T-shirts, hoodies, hats, and other branded merchandise production for your content brand.
Giveaway Prizes
Products and prizes given away to followers for promotional purposes.
Advertising & Promotion
Social media ads, sponsored posts, promotional materials, and marketing costs.
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