Twitch Streamer Taxes in Indiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Indiana?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of Indiana. The IRS views Twitch streaming as a business activity, meaning you're considered self-employed.

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 income and expenses related to your streaming business. You'll calculate your net profit (income minus expenses) on Schedule C, and that net profit is then transferred to your Form 1040 to be taxed as part of your overall income.

Indiana Specific Rules: Indiana has a flat income tax rate. For 2024, the Indiana individual income tax rate is 3.15%. This means regardless of your income level, you'll pay 3.15% of your taxable income to the state. Your net profit from Schedule C will be included in your Indiana adjusted gross income, and subject to this flat tax rate. You'll file Form IT-1040 to report your Indiana income tax.

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 cards, 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 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 mileage at the IRS standard mileage rate. For 2024, the rate is approximately 67 cents per mile. Keep a detailed log of your business miles.

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). However, you only pay self-employment tax on 92.35% of your net profit from Schedule C. 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 burden.

Important Note: Self-employment tax applies to earnings over $400.

Closing Tip for Indiana 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 nuances of self-employment tax and Indiana state tax laws. Proactive tax planning can save you money and headaches come tax season. Good luck with your streams, and happy filing!