Twitch Streamer Taxes in Wyoming - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Twitch Streamer income taxable in Wyoming?

Yes, even though Wyoming doesn't have a state income tax, your income from Twitch streaming is absolutely taxable at the federal level. The IRS considers income from Twitch streaming as self-employment income. This means you're essentially running your own business, and you're responsible for reporting your earnings and paying taxes on them.

You'll report your Twitch income on Schedule C (Profit or Loss From Business), which is filed along with your Form 1040. Schedule C allows you to deduct business expenses (more on that below!), reducing your taxable income. Keep meticulous records of all income and expenses.

Wyoming Specifics: The good news is Wyoming is one of the few states with no state income tax. This simplifies things considerably! You won't need to file a state income tax return. However, this doesn't exempt you from federal taxes.

Top Tax Write-offs for Twitch Streamers

As a Twitch streamer, you have several opportunities to reduce your tax liability by claiming legitimate business expenses. Here are a few key 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 you purchase it (using Section 179 deduction, subject to limitations) or depreciate it 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 even rent/mortgage. 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 official rate from the IRS). Keep a detailed mileage log!

The 15.3% Self-Employment Tax Surprise

Many first-time streamers 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 individual, you're responsible for both the employer and employee portions – a total of 15.3%. This is calculated on Schedule SE (Self-Employment Tax).

However, you only pay self-employment tax on your net profit (income minus expenses) exceeding $400. You do get to deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax burden.

Closing Tip for Wyoming Residents

Being a Wyoming resident offers the benefit of no state income tax, but don’t let that lull you into complacency regarding your federal tax obligations. Keep excellent records throughout the year, track all income and expenses diligently, and consider consulting with a qualified tax professional (like myself!) to ensure you're maximizing your deductions and complying with all IRS regulations. Proactive tax planning can save you significant stress and money in the long run. Good luck with your streams!