Twitch Streamer Taxes in Delaware - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Delaware?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the State of Delaware. As a Twitch streamer, you are generally considered self-employed by the IRS, and Delaware treats self-employment income the same as other forms of income for state tax purposes.

Federal Requirements: You'll report your Twitch income on Schedule C (Profit or Loss from Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your net profit. 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.

Delaware Specific Rules: Delaware has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Twitch income, after federal adjustments and deductions, will be added to your other income sources (if any) to determine your total Delaware taxable income. This total income is then subject to Delaware’s tax brackets. You'll use Delaware Form 100 to calculate your state income tax liability. The Delaware Division of Revenue website (revenue.delaware.gov) has the most up-to-date tax brackets and forms.

Top Tax Write-offs for Twitch Streamers

One of the benefits of being self-employed is the ability to deduct legitimate business expenses, reducing your taxable income. Here are some common deductions for Twitch streamers:

• Streaming Equipment: This includes your computer, webcam, microphone, lighting, capture cards, and any other hardware directly used for streaming. You can either deduct the full cost in the year of purchase (subject to Section 179 deduction rules – consult a tax professional for details) or depreciate the cost over several years.
• Software & Subscriptions: Costs for streaming software (OBS Studio, Streamlabs Desktop), editing software (Adobe Premiere Pro, DaVinci Resolve), graphic design tools (Photoshop), music licenses (StreamBeats), and any subscription services essential for your stream 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 Twitch-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 67 cents per mile (verify the final official rate from the IRS). Keep a detailed mileage log!

The 15.3% Self-Employment Tax Surprise

Many self-employed individuals are surprised to learn about self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions, totaling 15.3%. This is calculated on Schedule SE (Self-Employment Tax).

The good news is you only pay self-employment tax on 92.35% of your net earnings. Also, you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Delaware 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 US Tax Accountant (like myself!) who understands the nuances of self-employment tax and Delaware state tax laws. Proactive tax planning can save you money and headaches come tax season. Good luck with your streaming, and happy filing!