Yes. Small business owners and self-employed people can deduct a variety of costs associated with carrying on a business when it comes time to file taxes, which can result in a lower tax bill. Depending on your situation, you may be able to deduct: The cost of goods sold, such as materials used to make items for your Etsy shop Business use of your home, or a portion of your rent/mortgage and utilities, if you keep a home office Business use of your car, or a portion of your expenses based on mileage used for business purposes Business insurance costs For more details, check out our Side Hustler’s Complete Guide to Taxes.