Twitch Streamer Taxes in North Dakota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in North Dakota?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of North Dakota. The IRS treats Twitch streamers as self-employed individuals. This means you're responsible for reporting your earnings and paying both income tax and self-employment tax.

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), which is then added to your overall income. Even if you don't think you made a profit, you still need to file Schedule C if your gross income was $400 or more.

North Dakota Specific Rules: North Dakota has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. You'll use Form ND-1 to calculate your North Dakota income tax liability. Your federal adjusted gross income (AGI) is the starting point for calculating your North Dakota taxable income. North Dakota also has standard deductions and exemptions, which can reduce your taxable income. Be sure to consult the current ND-1 instructions for the most up-to-date rates and thresholds. You can find these on the North Dakota Office of State Tax Commissioner website.

Top Tax Write-offs for Twitch Streamers

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

• Streaming Equipment: This includes your computer, webcam, microphone, lighting, capture cards, and any other hardware directly used for streaming. 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 (StreamBeats), and any subscription services essential for your stream 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 the business portion of your mileage. For 2024, the standard mileage rate is approximately 67 cents per mile. 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 individual, you're responsible for both the employer and employee portions – a combined 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 can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI) on Form 1040. This helps offset some of the tax burden.

Closing Tip for North Dakota 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 unique challenges faced by Twitch streamers in North Dakota. Proper planning and accurate record-keeping will ensure you comply with all federal and state tax requirements and maximize your deductions. Good luck with your streams, and happy filing!