Sole proprietor needs guidance on correctly filling out Schedule C for tax filing, specifically whether Etsy fees and shipping costs are deductible.

The form itself lacks clear instructions on deducting platform-specific fees and shipping costs for online sellers.

Opp. Score

Severity

2Mild

Willingness to Pay

implied

Added

Jun 7, 2026

Workarounds Described

Googling how to fill out Schedule C
Using general tax software that doesn't handle Etsy fees specifically

Implied Software Gaps

Tax preparation software specifically designed for e-commerce sole proprietors that recognizes platform-specific fees

App Concept

SoleProp Tax Assistant

An AI-powered tax preparation app for sole proprietors that guides users through Schedule C with industry-specific questions. It auto-categorizes expenses like Etsy fees and shipping costs, and integrates with accounting software to generate accurate deductions.

Key Features

Industry-specific expense categorization (e.g., Etsy fees, shipping costs)
Step-by-step Schedule C wizard with built-in IRS guidelines
Direct integration with Etsy, Shopify, PayPal, and QuickBooks
Deduction maximization tips and audit risk alerts

Target Users: Sole proprietors and freelancers in e-commerce and home-based businesses with annual revenue under $100k

Revenue Model: Freemium with $19/mo Pro tier for unlimited filings and advanced integrations

Existing Solutions Mentioned

Schedule C Form 1040

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