Twitch Streamer Taxes in North Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in North Carolina?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of North Carolina. The IRS views 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 (Twitch payouts, subscriptions, donations, bits) and allows you to deduct business expenses (more on that below). Keep meticulous records of all income and expenses.

North Carolina Specifics: North Carolina has a flat income tax rate for 2024. As of late 2024, this rate is 4.5%. This means all of your taxable income (after deductions) will be taxed at this single rate. You'll report your federal adjusted gross income (AGI) on North Carolina Form D-400 and calculate your state income tax liability based on that figure.

Top Tax Write-offs for Twitch Streamers

As a self-employed streamer, you can significantly reduce your tax burden by claiming legitimate business expenses. Here are some common deductions:

• Streaming Equipment: Computers, webcams, microphones, lighting, capture cards, and even a comfortable gaming 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 (for background music during streams), and any subscription services used for your stream (overlays, alerts) 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 standard mileage rate. For 2024, the rate is approximately 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 first-time 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 individual, you're responsible for both the employer and employee portions, totaling 15.3% (12.4% for Social Security up to the annual wage base, 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 your net profit (income minus expenses) from Schedule C, and you can deduct one-half of your self-employment tax from your gross income on Form 1040.

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

Closing Tip for North Carolina Residents

Tax laws can be complex, and this information is for general guidance only. I strongly recommend keeping detailed 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 North Carolina state tax laws. Proactive tax planning can save you money and stress during filing season. Good luck with your streams!