Twitch Streamer Taxes in Maryland - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Maryland?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the State of Maryland. The IRS treats Twitch streaming as a business, meaning you're considered self-employed. You'll report your income and expenses on Schedule C (Profit or Loss From Business) as part of your Form 1040 federal income tax return. This schedule calculates your net profit (income minus expenses).

Maryland’s tax system is a bit more complex. Maryland has a graduated income tax rate, meaning the more you earn, the higher the percentage of tax you pay. For the 2024 tax year (filing in 2025), these rates will vary based on your taxable income. In addition to the state income tax, Maryland also levies a local income tax, which varies by county and city. Your net profit from Schedule C will be included in your Maryland state income tax calculation, and then both state and local taxes will be applied.

Top Tax Write-offs for Twitch Streamers

• Streaming Equipment: Computers, webcams, microphones, lighting, capture cards, and even a comfortable chair used primarily for streaming are 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: Costs for streaming software (OBS Studio, Streamlabs Desktop), editing software (Adobe Premiere Pro, DaVinci Resolve), graphic design tools (Photoshop), music licenses, and Twitch subscription services (for research or content creation) are generally 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 calculating the square footage of your streaming space versus the total square footage of your home. The home office deduction can be complex, so accurate record-keeping is crucial.
• 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 with dates, destinations, and business purpose.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040. However, this tax is in addition to your regular income tax, so it's important to plan for it. Self-employment tax applies to net earnings over $400.

Closing Tip for Maryland Residents

Navigating taxes as a Twitch streamer can be challenging, especially with Maryland’s state and local tax structure. 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 aspects of the gig economy and Maryland tax laws. Proactive tax planning can save you money and prevent potential issues with the IRS and the Maryland Comptroller's Office. Good luck with your streaming, and happy filing!