Twitch Streamer Taxes in Arkansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Arkansas?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of Arkansas. The IRS treats Twitch streamers as self-employed individuals. This means you're essentially running your own business, even if it's a solo operation.

Federal Requirements (Schedule C): You'll report your Twitch income and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). This form calculates your net profit (income minus expenses). Even if you don't think you made a profit, you still need to file Schedule C if your gross income from Twitch was $400 or more.

Arkansas Specific Rules: Arkansas has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from Schedule C will be added to your other income (like a W-2 job, if you have one) to determine your total taxable income for Arkansas. Arkansas then applies its graduated tax brackets to calculate your state income tax liability. You'll use Form AR1000 to file your Arkansas state income tax return. The Arkansas tax brackets for 2024 (filing in 2025) will be available on the Arkansas Department of Finance and Administration website (www.arkansas.gov/departments/finance-administration).

Top Tax Write-offs for Twitch Streamers

As a self-employed streamer, you can significantly reduce your tax burden by claiming legitimate business expenses. Here are some common deductions:

• Streaming Equipment: The cost of your computer, webcam, microphone, lighting, capture card, and other equipment used specifically for streaming is deductible. You can either deduct the full cost in the year you purchased it (using Section 179 deduction, subject to limitations) or depreciate it over several years.
• Software & Subscriptions: Expenses for streaming software (OBS Studio, Streamlabs Desktop), editing software (Adobe Premiere Pro, DaVinci Resolve), graphic design tools (Photoshop), music licenses (StreamBeats), and any subscriptions necessary for your stream (e.g., Twitch Affiliate/Partner fees) are deductible.
• Internet & Utilities: If you use a dedicated portion of your home exclusively and regularly for streaming, you can deduct a percentage of your home-related expenses, including internet, electricity, and rent/mortgage. This requires careful calculation using Form 8829 (Expenses for Business Use of Your Home).
• Mileage: If you travel for streaming-related activities (e.g., attending conventions, meeting with sponsors), you can deduct the business portion of your mileage. For 2024, the standard mileage rate is approximately 67 cents per mile. Keep a detailed mileage log!

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called self-employment tax and is currently 15.3% (12.4% for Social Security and 2.9% for Medicare) on the first $168,600 of net earnings (for 2024).

You'll calculate this on Schedule SE (Self-Employment Tax). Don't panic when you see this number! You do get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Arkansas Residents

Tax laws can be complex, and this information is for general guidance only. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) who understands the unique challenges faced by Twitch streamers in Arkansas. Proactive tax planning can save you money and stress come tax season. Good luck with your streams, and happy filing!