Twitch Streamer Taxes in Wisconsin - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Wisconsin?

Yes, absolutely. Income earned from Twitch streaming is considered taxable income by both the federal government and the state of Wisconsin. The IRS treats Twitch streamers as self-employed individuals, meaning you're essentially running your own business.

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). Even if you don't think you made a profit, you still need to file Schedule C if your gross income from Twitch exceeds $400.

Wisconsin Specific Rules: Wisconsin has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from Schedule C will be included in your Wisconsin taxable income, and taxed according to the current Wisconsin tax brackets. You'll use Form 1040-WI to calculate your Wisconsin income tax. Wisconsin also allows for many of the same deductions as the federal government, which can help lower your taxable income.

Top Tax Write-offs for Twitch Streamers

• Streaming Equipment: Computers, webcams, microphones, lighting, capture cards, and even a comfortable streaming chair are all potentially deductible. You can either deduct the full cost in the year you purchased them (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 deductible.
• Internet & Utilities (Home Office Deduction): If you use a portion of your home exclusively and regularly for your Twitch streaming business, you may be able to deduct a portion of your home-related expenses, such as rent or mortgage interest, utilities, and home insurance. There's a simplified method and a regular method for calculating this deduction.
• Mileage: If you drive for business purposes related to your stream (e.g., attending gaming conventions, purchasing equipment), you can deduct the mileage. For 2024, the standard mileage rate is approximately 67 cents per mile. Keep a detailed log of your business miles.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for paying 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 Schedule C.

You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you get to deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability. Don't be alarmed when you see this tax – it's a normal part of being self-employed!

Closing Tip for Wisconsin Residents

Tax laws can be complex, and this is a general guide. 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 nuances of self-employment tax and Wisconsin state tax laws. Proper planning and accurate record-keeping will ensure you're maximizing your deductions and complying with all applicable regulations. Good luck with your streams, and happy filing!