Can You Write Off Amazon Purchases?

If you’re running a business, chances are you’ve made a few purchases on Amazon. But can you write off Amazon purchases on your taxes? Yes—if they’re business-related expenses, you can deduct them and potentially lower your tax bill.

What Amazon Purchases Are Tax-Deductible?

The IRS allows you to deduct ordinary and necessary expenses for your business. This means purchases made on Amazon that are directly related to your business operations may qualify. Common examples include:

• Inventory: If you’re buying products to resell or materials to create products, those costs are deductible as cost of goods sold.
• Office Supplies: Items like pens, paper, printers, or office furniture purchased through Amazon can be written off as office expenses.
• Equipment: Electronics, tools, or machinery used in your business (e.g., laptops, cameras, or tools for your trade) are deductible.
• Shipping and Packaging Materials: Boxes, tape, and packing materials for fulfilling customer orders are legitimate business expenses.

What Doesn’t Count?

Personal purchases—even if you occasionally use them for business—are not deductible. For example, buying a TV on Amazon for your home that you occasionally use for business Zoom calls likely won’t qualify.

To stay compliant, only deduct items that are 100% business-related, or allocate the portion used for business if an item has mixed use.

How to Track and Deduct Amazon Purchases

• Save Receipts: Keep digital or physical copies of your Amazon order confirmations or invoices.
• Use Separate Accounts: Consider using a separate Amazon account or payment method for business purchases to simplify recordkeeping.
• Categorize Expenses: In your bookkeeping software, label these purchases correctly (e.g., inventory, supplies, equipment).

When tax season arrives, report these deductions under the appropriate categories on your tax return—typically Schedule C if you’re a sole proprietor.

Final Tip

While it’s easy to overlook small purchases, they add up and can significantly reduce your taxable income. When in doubt, consult a tax professional to ensure you’re taking full advantage of your deductions without crossing any IRS red lines.