Twitch Streamer Taxes in Idaho - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Idaho?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of Idaho. The IRS views Twitch streaming as a business, meaning you're considered self-employed. This has implications for how you report your income and pay taxes.

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 feel like you made a profit, you still need to file Schedule C if your gross income from Twitch exceeds $400.

Idaho Specific Rules: Idaho has a flat income tax rate. For 2024, the rate is 5.8%. This means you'll pay 5.8% of your taxable income (your federal adjusted gross income minus any Idaho-specific deductions) to the state. Because your Twitch income flows through to your personal income tax return via Schedule C, it's directly subject to this flat tax rate. Idaho also requires you to file a state income tax return even if your only income is from self-employment and it's below a certain threshold.

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 specifically 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 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 mileage at the standard mileage rate. For 2024, the rate is 67 cents per mile (verify the official IRS rate at irs.gov). 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 – a combined 15.3% (12.4% for Social Security and 2.9% for Medicare).

You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on 92.35% of your net earnings from Schedule C. You do get to 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 Idaho Residents

Tax laws can be complex, and this is a general guide. 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 nuances of self-employment tax and Idaho state tax laws. Proactive tax planning can save you money and stress come tax season. Good luck with your streams, and happy filing!