Twitch Streamer Taxes in Tennessee - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Tennessee?

Yes, your income from Twitch streaming is taxable, but the situation in Tennessee is simpler than in many other states. The federal government considers income from Twitch streaming as self-employment income. This means you'll report your earnings on Schedule C (Profit or Loss from Business) as part of your Form 1040. You'll detail your income (Twitch payouts, subscriptions, donations, etc.) and any allowable business expenses. The difference between your income and expenses is your net profit, which is subject to both income tax and self-employment tax.

Tennessee-Specific Rule: Tennessee does not have a state income tax. This is excellent news! You will only be responsible for federal income tax and self-employment tax. However, you are still required to file a federal tax return if your net earnings from self-employment are $400 or more.

Top Tax Write-offs for Twitch Streamers

As a Twitch streamer, you likely have several expenses that can reduce your taxable income. 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 internet bill, electricity, and potentially even rent or mortgage interest. The percentage is based on the square footage of your streaming space compared to your total home square footage. (Form 8829 is used for this Home Office Deduction).
• Mileage: If you travel for Twitch-related activities (e.g., conventions, meetups, equipment purchases), you can deduct the business portion of your mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final IRS rate at IRS.gov). 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%. This is calculated on Schedule SE (Self-Employment Tax). You'll calculate your net earnings subject to self-employment tax (92.35% of your Schedule C profit) and then apply the 15.3% rate. The good news is you can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Tennessee Residents

Being a Tennessee resident offers a significant tax advantage with no state income tax. However, diligent record-keeping is crucial to maximize your deductions and accurately report your federal income and self-employment taxes. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're compliant and minimizing your tax liability. Don't wait until the last minute – proactive tax planning can save you stress and money.