Twitch Streamer Taxes in Utah - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Utah?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of Utah. 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 will 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 other income to determine your adjusted gross income (AGI). Keep meticulous records of all income received from Twitch (including subscriptions, donations, bits, and sponsorships) and all related business expenses.

Utah Specific Rules: Utah has a flat income tax rate of 4.85% for the 2024 tax year (filing in 2025). This means regardless of your income level, you'll pay 4.85% of your taxable income to the state. Your federal AGI is the starting point for calculating your Utah taxable income, and you'll use Form TC-1040 to file your Utah state income tax return. You'll also be able to deduct any itemized deductions allowed by Utah law, which may differ slightly from the federal rules.

Top Tax Write-offs for Twitch Streamers

As a self-employed streamer, you can significantly reduce your tax liability by claiming eligible 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 (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. The percentage is based on the square footage of your streaming space compared to the total square footage of your home. (Form 8829 is used for this Home Office Deduction).
• 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 67 cents per mile. Keep a detailed mileage log with dates, destinations, and business purpose.

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% (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 AGI. Remember, self-employment tax is only due on earnings over $400.

Closing Tip for Utah Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping detailed records of all 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 Utah. Proactive tax planning can save you money and stress during tax season. Good luck with your streams, and happy filing!