Is Etsy fees line 10 or line 8?

Etsy Ads and the Offsite Ads percentage buy traffic, so they are advertising on line 8, while transaction, listing and processing fees are line 10.

Is Etsy fees line 10 or part iii line 38?

Yarn, wood, blanks and other materials that went into the item are cost of goods sold in Part III, not a selling fee.

Where do Etsy fees go on Schedule C? Line 10

Q: Where do Etsy fees go on Schedule C?

Etsy fees belongs on Line 10, commissions and fees. Etsy's transaction fee, its payment processing fee and the 20 cent listing fee are all costs of selling on the platform, so line 10 is where they go. Etsy reports gross sales on the 1099-K, which means the fees have to be deducted rather than netted against income. Listing fees stay deductible on items that never sold, because the cost was incurred in the attempt to sell them.

Short answer Schedule C, Line 10 Commissions and fees

Etsy fees belongs on Line 10, commissions and fees.

Why line 10

Etsy's transaction fee, its payment processing fee and the 20 cent listing fee are all costs of selling on the platform, so line 10 is where they go. Etsy reports gross sales on the 1099-K, which means the fees have to be deducted rather than netted against income. Listing fees stay deductible on items that never sold, because the cost was incurred in the attempt to sell them.

Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so Etsy fees lands on Line 10 without you sorting it.

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What Etsy fees is confused with

Line 8, advertising: Etsy Ads and the Offsite Ads percentage buy traffic, so they are advertising on line 8, while transaction, listing and processing fees are line 10.
Part III line 38, part iii line 38, materials and supplies: Yarn, wood, blanks and other materials that went into the item are cost of goods sold in Part III, not a selling fee.
Line 27a, other expenses: The flat Etsy Plus monthly subscription is not tied to a sale, so itemise it on line 27a instead of calling it a commission.

Examples that belong on line 10

6.5 percent transaction fee on a 40 dollar print
20 cents per listing, renewed every four months
Etsy Payments processing fee of 3 percent plus 25 cents
A regulatory operating fee on sales to buyers in the UK
A currency conversion fee on a sale priced in euros

What does not belong here

Etsy Ads spend, which is advertising on line 8
Shipping labels bought through Etsy, which are a shipping cost on line 27a or part of cost of goods sold
Marketplace sales tax Etsy collects and remits, which you never received
Materials and supplies for the products themselves, which belong in Part III

What to keep

Pull the year-end statement CSV from Shop Manager under Finances: it splits fees by type, and it reconciles to the 1099-K Etsy files.

Other expenses on line 10

Expense	Line
a real estate commission split	Schedule C, Line 10
Amazon seller fees	Schedule C, Line 10
App Store and Google Play commission	Schedule C, Line 10
pay-per-lead fees from Thumbtack, Angi or Yelp	Schedule C, Line 10
PayPal fees	Schedule C, Line 10
referral fees you pay	Schedule C, Line 10
sales commissions you pay	Schedule C, Line 10
Shopify transaction fees	Schedule C, Line 10
Square fees	Schedule C, Line 10
Stripe processing fees	Schedule C, Line 10
Upwork and Fiverr platform fees	Schedule C, Line 10

Related lookups

Sources

This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.

Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.

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