Twitch Streamer Taxes in Hawaii - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Hawaii?

Yes, absolutely. Income earned from Twitch streaming is taxable at both the federal and Hawaii state levels. The IRS considers you self-employed when you earn income through Twitch, meaning you're essentially running your own business.

Federal Requirements: You'll report your Twitch income on Schedule C (Profit or Loss from Business) as part of your Form 1040. This form details your revenue and allowable business expenses. You'll calculate your net profit (revenue minus expenses), and that net profit is added to your overall income for federal tax purposes.

Hawaii Specific Rules: Hawaii has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from Twitch streaming, added to any other income you have, will be taxed according to these brackets. Hawaii also has its own form for reporting income, Form N-11, which you'll use in conjunction with your federal return. You'll need to determine your Hawaii taxable income and apply the appropriate tax rates. Hawaii's tax rates and brackets are available on the Hawaii Department of Taxation website (https://tax.hawaii.gov/).

Top Tax Write-offs for Twitch Streamers

As a self-employed streamer, you can significantly reduce your tax liability 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 directly for streaming is deductible. You can either deduct the full cost in the year of purchase (using Section 179 deduction, subject to limitations) or depreciate the cost 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 internet bill, electricity, and even rent/mortgage. This is calculated using the home office deduction (see IRS Publication 587). Be careful with this one – the rules are strict!
• Mileage: If you travel for streaming-related activities (e.g., attending conventions, meeting with sponsors), you can deduct mileage at the 2024 federal rate of 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 new streamers 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% (12.4% for Social Security and 2.9% for Medicare).

You'll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on 92.35% of your net earnings. The good news is 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 Hawaii Residents

Navigating taxes as a self-employed individual, especially in a state like Hawaii with its own unique tax rules, can be complex. 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 familiar with Hawaii tax law. Proactive planning and accurate record-keeping will save you time, money, and potential headaches during tax season. Aloha and happy streaming!