Twitch Streamer Taxes in South Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in South Carolina?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income at both the federal and South Carolina state levels. The IRS views Twitch streamers as self-employed individuals. This means you're responsible for reporting your earnings and paying all applicable taxes.

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 factored into your adjusted gross income (AGI). Keep meticulous records of all income received from Twitch – including subscriptions, donations, bits, and any sponsorships. Twitch provides a 1099-K form if you meet certain thresholds (generally $20,000 in gross payments and more than 200 transactions, but these thresholds are subject to change, so always verify with the IRS).

South Carolina Specific Rules: South Carolina has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from Schedule C will be added to your other income, and then South Carolina tax will be calculated based on the applicable tax brackets for the 2024 tax year. You'll use South Carolina Form SC1040 to calculate your state income tax liability. South Carolina also allows for itemized deductions, which may further reduce your taxable income (see below for potential deductions).

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: 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 (for background music during streams), and any subscription services essential to 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 (verify the official IRS rate at IRS.gov). Keep a detailed mileage log.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for 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). You only pay self-employment tax on your net earnings exceeding $400. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for South 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 South Carolina state tax laws. Proactive tax planning can save you money and prevent headaches during tax season. Good luck with your streams, and happy filing!