Selling on Whatnot can be an exciting way to grow your income, build a brand, and connect with buyers in real time. But when tax season rolls around, many Whatnot creators miss out on valuable deductions that could lower their taxable income and put more money back in their pockets.
If you are serious about your reselling or creator business, understanding what you can legally write off is just as important as sourcing inventory and hosting great live shows. Below are some of the most common and overlooked tax deductions for Whatnot sellers, with real examples you can relate to.
Can You Write Off Expenses as a Whatnot Seller?
Yes. If you sell consistently with the intent to make a profit, your Whatnot activity likely qualifies as a business. That means ordinary and necessary business expenses can generally be deducted.
These deductions reduce your taxable income, which lowers how much you owe.
1. Home Office Deduction for Whatnot Sellers
If you use part of your home exclusively and regularly for your Whatnot business, you may qualify for the home office deduction. This applies whether you live in an apartment, condo, or house.
Common Whatnot related home office uses include your spare bedroom for storing inventory, the room you dedicate for filming or live streaming, and even your workspace for listing products and handling customer messages.
Qualifying uses:
- A room dedicated to live streaming
- A storage space for inventory
- A desk area for listing items and responding to buyers
Deductible home office expenses:
- Rent or mortgage interest
- Property taxes
- Home insurance
- Repairs related to the workspace
Example:
If 1 room in your 5-room apartment is used only for Whatnot, you may deduct the percentage of rent based on square footage.
This is one of the most valuable tax deductions for Whatnot sellers who stream and ship frequently.
2. Utility Write-Offs for Whatnot Sellers
Many Whatnot sellers forget that utilities used for business purposes can also be partially deductible if you qualify for the home office deduction. You do have to calculate the percentage of utilities you dedicate to operating your business.
Potentially deductible utilities:
- Electricity (ring lights, studio lighting, cameras)
- Heating and cooling
- Water used for cleaning inventory
Example:
If you stream multiple hours per day with lighting equipment, part of your electric bill may qualify as a business expense.
3. Phone and Internet Deduction
Your phone and internet are essential tools for running a Whatnot business. From going live to responding to buyers and managing orders, these services are a daily part of your entire operation.
- Hosting live streams
- Messaging buyers
- Uploading listings
- Managing orders
You can deduct the business-use percentage of:
- Mobile phone bills
- Home internet service
Example:
If 70 percent of your phone use is business-related, you may deduct 70 percent of your phone bill.
4. Filming Equipment and Streaming Gear
Your filming setup is not just for fun. It is a business investment. Many Whatnot creators upgrade their gear to improve video quality and boost sales.
Common Whatnot equipment write-offs:
- Ring lights
- Softbox lighting kits
- Tripods
- Microphones
- Webcams
- Cameras
- Backdrops
If you purchase a ring light and tripod specifically to improve your live stream quality on Whatnot, these items are generally deductible as business equipment.
In some cases, larger purchases may need to be depreciated over time. This is where a tax professional (like Cookie Finance) can help you choose the best strategy.
5. Software and Subscription Deductions
Running a Whatnot business often means paying for software to stay organized, improve content quality, and manage finances.
Deductible software may include:
- Video editing tools
- Streaming platforms
- Inventory management systems
- Bookkeeping software
- Design tools
Subscriptions used for business are typically fully deductible.
6. Packaging and Shipping Supplies
Shipping is a huge part of selling on Whatnot, and those small costs add up quickly. You likely spend a decent amount of money to ensure your products are safely packaged and shipped. You might even have upgraded your space with counters and shelves to make the packaging process more efficient! (That would count as a write-off because it is a home office renovation.)
Deductible supplies include:
- Boxes and mailers
- Bubble wrap
- Tape
- Shipping labels
- Printer ink
- Thank-you cards
If you ship 200 orders in a month and spend money on mailers, tape, and printer ink, those expenses are directly tied to your Whatnot income and can usually be deducted.
7. Inventory and Cost of Goods Sold (COGS)
Whatnot sellers often spend money sourcing items to resell. Whether it’s shopping online for products or even traveling to purchase inventory, many of these costs can qualify as business expenses.
This includes:
- Products purchased for resale
- Wholesale inventory
- Raw materials (if modifying items)
Tracking your sourcing trips and keeping receipts for inventory purchases is essential if you want to maximize your deductions.
8. Travel and Mileage for Sourcing Inventory
If you travel to:
- Thrift stores
- Card shops
- Trade shows
- Conventions
You may be able to deduct:
- Mileage
- Parking
- Event entry fees
Keep detailed mileage logs and receipts.
9. Storage and Organization Expenses
If you purchase:
- Storage bins
- Shelving
- Labeling systems
These may qualify as business equipment or supplies.
Why Tracking Whatnot Tax Deductions Matters
Every deductible expense reduces your taxable income. That means lower taxes and more money to reinvest into your Whatnot business. Many sellers leave money on the table simply because they forget to track small recurring expenses like software subscriptions, internet usage, or packaging supplies.
Using a dedicated business account and simple bookkeeping software can make a massive difference when tax season arrives. If you’re just starting out, we’ve got a free Income and Expense Tracker to help you get organized!
Final Thoughts: Maximize Your Whatnot Seller Write-Offs
Being successful on Whatnot is not just about great products and engaging live auctions. It is about running a smart, organized business.
The most commonly missed Whatnot seller tax deductions include:
- Home office expenses
- Utilities
- Phone and internet
- Streaming equipment
- Software subscriptions
- Packaging supplies
- Inventory sourcing trips
Tracking these consistently throughout the year can save thousands.
Work With a Creator-Focused Tax Professional
If you are unsure which Whatnot write-offs apply to you, working with a specialist can help ensure you stay compliant while maximizing savings.
At Cookie Finance, we work exclusively with online creators and resellers. If you want help organizing your books, tracking deductions, or filing your taxes, book a call, and we will walk you through exactly what the next steps look like.