You’re already a master at sharing your products, getting people excited, and driving sales. But here’s a question: Are you cashing in on every possible tax deduction for those product samples you’re giving out? If not, you’re leaving money on the table.

And we can’t have that. You need every advantage to grow your business and keep more of your hard-earned money. Here’s the ultimate guide to writing off product samples so you’re not overpaying Uncle Sam. Let’s make sure you’re doing it the right way.

Let’s get right to the point. YES, product samples are deductible, but only if you follow the rules. If you’re handing out samples to prospects or team members, that’s considered a business expense. The IRS loves that—you’re using those samples to drive sales. But you gotta prove it, and here’s the scoop on how to do it.

First off, make sure those samples are 100% tied to your business. Are they helping you grow your business? Are you using them to promote what you’re selling? Perfect—check that box. This means samples you’re handing out at demos, team meetings, or product events all count.

And here’s the golden rule: No mixing business with personal use when it comes to product samples. If it’s for business? It’s deductible. Personal? Not deductible. Simple as that.

You might think, “Ugh, more paperwork,” but listen: If you want those deductions, you gotta document. Think of it as keeping a little “proof of hustle.” The IRS needs to know these samples are business expenses, and with a few simple steps, you’ll be ready.

Here’s what you need:

Get in the habit of keeping these records, and you’ll be thanking yourself come tax time. You don’t want to miss out on a single deductible dollar.

This is where it can get messy if you’re not careful. Only samples used to promote your business are deductible—not the ones you’re using for yourself.

Let’s break it down:

Pro tip: Think about the end use of each product you buy. If it’s for growing your business, keep it in the deductible category. Keeping business and personal separate makes it a lot easier to maximize your deductions and minimize the IRS’s interest.

Are all samples fully deductible? Not always. Here’s the deal:

If the product is exclusively for business—like the ones you hand out in demos or send to customers—you can deduct 100% of the cost. But if you’re using it personally too, then only the business portion is deductible.

For example, if you use 40% of a sample pack for business and 60% for yourself, then only 40% of that cost is deductible. See the difference? It’s all about tracking how you’re using these products, so you know exactly what to claim at tax time.

Let’s talk shipping—another cost you can deduct. If you’re mailing product samples to customers, prospects, or even team members, you can deduct those shipping costs as well. It’s just another business expense, and the IRS knows it takes money to make money.

​Pro tip: Save your shipping receipts and make a quick note of who the sample was sent to and why. Each time you mail out a sample, that’s a tax deduction in your pocket.

Got expensive samples you’re handing out? The IRS doesn’t put a hard limit on sample deductions, but they do expect your expenses to be “ordinary and necessary.” That means they need to make sense within the context of your business.

Let’s say you’re sharing high-end wellness products—totally deductible as long as they’re used strategically in your business. But handing out $500 samples left and right? That could raise eyebrows if it’s not reasonable for your business type. When in doubt, ask yourself: “Is this a smart way to build my business?” If the answer is yes, and you’re keeping records, you’re good to go.

Don’t let these common mistakes cost you money or, worse, trigger an IRS audit. Here’s what to avoid:

And one more thing—don’t make it harder than it has to be. Simple logs, notes, and receipts will get the job done and help keep you organized without the hassle.

Want to keep more of what you earn? Be smart about your deductions. Product samples are a simple way to grow your business and save on taxes, but only if you’re handling them correctly. Keep it all about business, document everything, and avoid mixing personal and promotional use. Stick to these rules, and you’ll keep more money in your pocket while staying 100% compliant.

When it comes to taxes, a little record-keeping goes a long way—don’t let Uncle Sam take more than his fair share!

Can I Deduct Sample Costs if My Business Is Not yet Profitable?

Yes, you can. Even if your business is still growing, the IRS allows deductions for business expenses, and product samples are a valid marketing tool. Just keep records as usual to back up these deductions.



How Do Sample Write-Offs Affect My Overall Taxable Income?

Sample write-offs reduce your taxable income, which means less tax owed. So, by writing off product samples, you’re lowering the amount the IRS can tax, saving you money overall. It’s just another reason to document each sample and claim every legitimate expense.



Are There Special IRS Forms for Declaring Sample Expenses?

No need for a special form. Just use your usual tax forms, like the Schedule C on your 1040 form, to list these deductions under “Supplies” or another business expense category. Just make sure you categorize these expenses accurately and keep your records handy.



Is There a Deadline for Claiming Deductions on Product Samples?

Yes. You’ll need to claim these deductions by the tax filing deadline (usually April 15th for the previous year). If you file an extension, your deadline shifts. Make sure you’re staying organized throughout the year so you’re ready for tax season.



Can I Still Deduct Samples Given to Non-Customers for Promotional Purposes?

Absolutely! Samples given to non-customers for promotional purposes are deductible as they’re seen as marketing expenses. Just keep records of these promotions to show they’re part of your business plan.