Twitch Streamer Taxes in Texas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Texas?

Yes, your Twitch streaming income is taxable at the federal level, even though Texas has no state income tax. The IRS considers income from Twitch streaming as self-employment income. This means you'll report your earnings and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). You'll calculate your net profit (income minus expenses) on Schedule C, and that net profit is then added to your other income when calculating your adjusted gross income (AGI) on Form 1040.

Texas Specifics: Because Texas does not have a state income tax, you will not file a state income tax return. However, your federal tax obligations remain the same as for streamers in any other state.

Top Tax Write-offs for Twitch Streamers

• Streaming Equipment: Computers, webcams, microphones, lighting, capture cards, and other equipment used directly for your stream 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 careful calculation using Form 8829, Expenses for Business Use of Your Home.
• 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!

The 15.3% Self-Employment Tax Surprise

As a self-employed individual, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from self-employment. However, you only pay self-employment tax on earnings over $400. You'll calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040. Don't be alarmed when you see this amount – it's a normal part of being self-employed! You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Texas Residents

While you benefit from the lack of state income tax in Texas, diligent record-keeping is crucial for maximizing your federal tax deductions as a Twitch streamer. Consider using accounting software or working with a qualified tax professional to ensure you're claiming all eligible expenses and complying with IRS regulations. Proactive tax planning can save you significant money and stress during tax season. Good luck with your streams!