Paying Taxes as a Twitch Streamer
If you’re a Twitch streamer, and you’re making some money off of it, that revenue may need to be reported on your taxes. However, filing your taxes as a live streamer is a bit different than filing taxes on a nine-to-five income, so to help you navigate the complex world of Twitch taxes, we’re sharing a few pointers to help you get started.
Reporting Revenue as a Twitch Streamer
If you have made more than $400 from Twitch, you have to report that income to the IRS. If you remember nothing else, remember that. Also, this means all the money you’ve gotten, including ad revenue, donations from friends, collecting bits, and having subscribers, is included in revenue, so if you earned $350 from ads and subscriptions, and $75 in donations through the year, you need to report that income.
As a live streamer, you’re considered self employed as a broadcaster which means Twitch will send you a 1099 form with your income if they paid out $600 in the year. That form can help you file your taxes, but don’t rely solely on it for accuracy, and try to keep your own records throughout the year of your revenue.
Twitch Streamer Taxes and Expenses – What Can You Write Off?
As a self-employed person, it’s assumed that you’ll have business related expenses that you can write off as deductions on your taxes. The general rule is that anything deemed “ordinary and necessary,” or anything that is helpful to your work and is common in the industry can be written off.
Some examples include:
- Spending money on Twitch for networking like subscriptions
- Going to events like TwitchCon to network.
- Your phone bill if you use it to keep up with your social media profiles
- Games, microtransactions
- Gear like a camera, mic, software, and computer or console gear such as a new keyboard or RAM.
Check Out Stream Key for More on Twitch Taxes
We sat down with CPA and Twitch member Ernest Jones to talk taxes for live streamers on our podcast, Stream Key. We go in depth on things like LLCs, talking to an accountant, and so much more, so make sure you check it out. The Stream Key Podcast is live on our Twitch channel every Friday at 11am-1pm EST if you’d like to join and get your own question answered. https://twitch.tv/trugaming #StreamKey #Twitch #Gaming
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