Twitch Streamer Taxes in Kansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Kansas?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of Kansas. The IRS treats Twitch streaming as a business, 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 revenue and allowable business expenses. You'll calculate your net profit (revenue minus expenses) which is then reported on your 1040. Even if you don't receive a 1099-K from Twitch (the reporting threshold has changed, but it's still good practice to report all income), you are legally obligated to report all income earned.

Kansas Specific Rules: Kansas has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from Schedule C will be added to your other income (like a W-2 job, if applicable) and taxed according to the Kansas income tax brackets for 2024. You'll use Kansas Form K-40 to file your state income tax return. Kansas also allows for itemized deductions, which may further reduce your taxable income, but we'll focus on business deductions first.

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 potentially even rent or mortgage interest. This is calculated using the home office deduction (Form 8829). Be careful with this one – the requirements are strict.
• 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 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 by self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed streamer, you're responsible for both the employer and employee portions, totaling 15.3%.

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 liability.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Kansas Residents

Navigating self-employment taxes 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 (like myself!) who understands the unique challenges faced by Twitch streamers in Kansas. Proper planning and accurate record-keeping will ensure you're compliant with both federal and Kansas tax laws and maximize your eligible deductions. Don't hesitate to seek professional guidance – it can save you time, money, and potential headaches in the long run!