Statement Sorter | General categorizing guide | Gig driver guide
Running an online shop means deductible costs show up on almost every statement: materials, packaging, shipping labels, marketplace fees, and the software that runs the shop. The deduction only helps if those transactions actually get sorted into categories your tax software or preparer can use, and most sellers put that off until filing season.
| Category | Typical transactions |
|---|---|
| Materials & Supplies | Craft/raw materials, packaging, labels, supply runs to Michaels, Amazon, Uline |
| Marketplace & payment fees | Etsy listing/transaction fees, Shopify subscription and payment fees, PayPal/Stripe processing |
| Shipping | USPS, UPS, FedEx, Pirate Ship, Shippo postage purchases |
| Software/Hosting | Shopify or Etsy Plus subscription, Canva, inventory or accounting apps |
| Income/Payroll | Etsy, Shopify, PayPal, and Stripe payout deposits, track separately from expenses |
| Phone/Internet | The business-use portion of your phone or internet bill |
| Insurance | Business liability or product insurance |
| Rent/Office | Studio or storage space, craft fair booth fees |
| Taxes | Estimated quarterly payments, sales tax you remit |
| Transfers | Moving money between your own accounts or to savings, not real expenses |
The free tool currently sorts transactions into a fixed list (Vehicle/Fuel, Supplies, Phone/Internet, Software/Hosting, Income/Payroll, Insurance, Meals, Rent/Office, Taxes, Transfers). It doesn't yet have dedicated "Shipping" or "Marketplace fees" buckets, so those often land under Supplies, Software/Hosting, or Uncategorized. It still clears out most of the manual sorting; just give the Uncategorized pile a second look for shipping and fee line items before you file.
Statement Sorter takes the CSV export from your bank, PayPal, or card account and sorts it automatically, with an AI pass for transactions plain rules miss. No bank login, no signup, free while in beta.
Try it on your statementThis is a general guide, not tax advice for your specific situation - deduction rules vary by state and change over time. Review any automated categorization before you file, and check current IRS guidance or a tax preparer for anything you're unsure about.