As a Twitch streamer, you might be unsure how to claim money earned from Twitch donations, subs, and bits. For Twitch viewers, you may be wondering if you can claim Twitch donations on your taxes. In order to stay in Uncle Sam’s good graces, we’ve prepared some information on how you should be filing your taxes when it comes to Twitch.
Streamlabs University has a highly detailed chapter for streamers, including full time streamers and hobbyists, and how to file taxes accordingly. You can check out How to File Taxes as a Twitch Streamer to get the full scoop.
In short, you will need to claim all of your earnings on your taxes, whether you are a hobby streamer or someone who relies on streaming for some or all of their income. The only difference is that hobbyists cannot claim purchases made for streaming as a deduction, while a full time streamer can. While not every item is claimable, items such as streaming equipment, commissions paid to artists for something like a VTuber model, and even a portion of monthly internet fees are able to be deducted.
If you’ve ever donated or tipped a streamer and wondered whether your contribution was tax deductible or not, you’re not alone. In short, any subs, bits, or tips given to a streamer are not tax deductible. A donation given to an individual (in this case, a streamer) is a personal gift. Since a Twitch viewer receives various perks when subbing, a sub is considered an entertainment purchase (much like a Netflix subscription) and is not tax deductible in any way.
The only thing that is truly tax deductible is a direct contribution to a registered charitable organization. Donations made through Streamlabs Charity are considered tax deductible. In regards to platforms like Tiltify, you’ll need to make sure that your donation is going to a registered charity and not an individual. Donations made to a streamer who plans to donate the proceeds to a charity at a later date are not tax deductible. For more information on charitable donations, you can view this post made by Twitch.
While filing taxes as a streamer might result in a few head-scratching moments, the good news is that as streaming becomes more common, more information will become available. If you’re ever unsure about anything when it comes to your taxes, it’s best to consult with a professional. Play it safe, follow the rules, and keep accurate records. Also, remember that tax rules and requirements can change each year, so be sure to double check before you file. Stay safe and happy streaming!